Mumbai, 8 Feb (Commoditiescontrol): Gold prices gained on Wednesday due to a slight pullback in the dollar, while investors looked forward to comments from Federal Reserve officials that may provide clues on the interest rate path this year.
Spot gold edged up 0.1% to $2,036.99 per ounce. U.S. gold futures also inched higher 0.1% to $2,053.10 per ounce.
The dollar slipped 0.2% against its rivals, making gold less expensive for other currency holders.
Gold was anchored and people did not have the clarity on when Fed is going to cut rates, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Investors are awaiting remarks from Fed officials due to speak this week. The focus is likely to shift later to next week's inflation report for further clues on the timing of rate cuts.
The timing of U.S. rate cuts was no clearer after Fed Presidents Loretta Mester and Neel Kashkari said that if the U.S. economy performs as expected, it could open the door to rate cuts. But the fight against inflation is "not done yet." Strong U.S. economic data and hawkish remarks from Fed Chair Jerome Powell have dashed hopes for a rate cut in March and triggered traders to cut back bets of a May U.S. rate cut.
Traders now see about a 69% chance of a U.S. rate cut in May, according to the CME Fed Watch Tool. Lower interest rates tend to support non-interest-bearing bullion.
Spot silver fell 0.5% to $22.30 per ounce, palladium was down 3% at $921.86 and platinum lost 2.4% to $881.71.
(By Commoditiescontrol Bureau: 09820130172)
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