© Archyde.com. Gold bars displayed in Seoul, with a photo from the Archyde.com archive.
(Archyde.com) – It fell slightly on Wednesday as the US dollar rose, but losses were capped by expectations of a slowdown in the rate at which the Federal Reserve would raise interest rates.
It fell 0.3 percent to $1,902.79 an ounce by 0256 GMT.
US gold futures fell 0.2 percent to $1,906.
It rose 0.3 percent.
A rising dollar makes gold more expensive for buyers holding other currencies.
“Gold will be active around the $1,900 level in the near term. I don’t think we will see any big moves and it will remain stuck in a narrow range,” said Edward Meer, metals analyst at Marix.
“The market will focus on economic data. If it continues in the direction that inflation is going down and interest rates are going to go down, then gold will be on the rise,” he added.
The metal benefits from lower interest rates, as it reduces the opportunity cost of holding non-yielding gold.
As for other precious metals, it fell in spot transactions by 0.1 percent to $23.90 an ounce, and platinum fell 0.6 percent to $1,033.06, and fell 0.2 percent to $1,740.30.
(Prepared by Mahmoud Salama for the Arabic Bulletin)
