Gold holds steady as traders await Fed minutes
Gold prices held steady on Wednesday as investors looked forward to minutes of the last Federal Reserve policy meeting due later in the day for more clarity on its next moves, while a stronger dollar kept bullion's gains in check.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,061.49 per ounce, as of 0132 GMT. U.S.
gold futures eased 0.2% to $2,069.90 per ounce.
* The dollar index hovered near a more than one-week peak hit in the previous session, helped by a jump in Treasury yields. A stronger dollar makes gold more expensive for other currency holders.
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* The minutes of the U.S. central bank's December policy meeting will be released at 1900 GMT.
* Traders have doubled down on bets for interest rate cuts in 2024, encouraged by slowing inflation and a dovish tilt by the Fed at its December policy meeting.
* Futures markets see a 70% chance of a 25 basis-point rate cut at the March 20 Fed meeting, according to CME's FedWatch Tool.
* Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
* Investors are keenly awaiting a slew of U.S.
economic data this week, including non-farm payrolls report on Friday that may influence whether the Fed begins to cut rates in March as markets expect.
* Investors are also keeping a close watch on tension in the Middle East after Israel killed Hamas deputy leader Saleh al-Arouri in a drone strike in Lebanon's capital Beirut on Tuesday.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.06% to 878.54 tons on Tuesday from 879.11 tons on Friday. [GOL/ETF]
* Spot silver gained 0.1% to $23.66 per ounce, while platinum was little changed at $981.27.
