Gold prices were stuck in a narrow $10 trading range on Wednesday as investors held back from making big bets ahead of U.S. economic data this week that could shed more light on the Federal Reserve’s interest rates outlook.
Spot gold was flat at $1,970.13 per ounce by 0948 GMT, having declined in the previous two sessions and trading below a five-month high hit last week. U.S. gold futures eased 0.3% to $1,981.10. On one side, the geopolitical tensions and disappointing economic data in Europe drives the safe-haven trade for gold. On the other side, strong data out of the U.S. will raise expectations that the Fed will keep rates higher for longer, perhaps even hike again in this year, and this should support the dollar (and) Treasury yields, and it’s bad for gold.
