Gold prices traded in a tight range on
Tuesday, as investors maintained a cautious stance ahead of this
week’s policy meeting by the Federal Reserve where the U.S.
central bank is likely to hike interest rates to tame high
* Spot gold held its ground at $1,676.80 per ounce,
as of 0037 GMT. U.S. gold futures rose 0.5% at $1,686.70.
* The U.S. Fed, at the conclusion of its two-day policy
meeting on Wednesday, is expected to raise interest rates by 75
basis points, with markets even seeing a 19% chance for a 100
* High interest-rate environment increases the opportunity
cost of holding non-yielding bullion.
* Gold prices weakened on Monday, hovered toward a 29-month
low hit on Friday, as the U.S. dollar and Treasury yields firmed
on expectations of a hefty Fed rate hike.
* Even though the dollar index dipped 0.3%, it wasn’t
far from a 20-year high. Stronger greenback makes bullion more
expensive for other currency holders.
* The benchmark 10-year Treasury yield held close to its
highest level in over a decade scaled on Monday.
* Holdings of SPDR Gold Trust , the world’s largest
gold-backed exchange-traded fund, fell 0.30% to 957.95 tonnes on
Monday from 960.85 tonnes on Friday.
* Spot silver lost 0.7% to $19.48 per ounce.
Platinum dipped 0.1% to $918.29 and palladium was
down 1.5% at $2,191.75.
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(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by