Gold stable as investors await Fed rate- hike stance

Gold prices traded in a narrow range on Wednesday as investors looked for more clues on the pace of US monetary tightening from Federal Reserve minutes and inflation data due this week.

Spot gold fell 0.1percent to $ 1,662.98 per ounce, as of 3.43am GMT, hovering close to a one- week low touched on Tuesday. US gold futures were down 0.9percent at $ 1,671.00.

Investors are awaiting the release of minutes from the Fed’s September meeting, at 6.00pm GMT. Focus is also on the inflation reading due on Thursday, which could shine some light on the Fed’s rate- hike trajectory. “Gold prices seem to be consolidating. There is a pause in the market ahead of major event risks, with Fed minutes and [ consumer price index ( CPI)] report due,” said Ilya Spivak, a currency strategist at DailyFX.

“The more aggressive the Fed is, the less attractive gold looks. Market expects the minutes to just confirm the Fed’s appetite for tightening.” Gold is considered an inflation hedge, but rising interest rates reduce the non- yielding bullion’s appeal. Federal Reserve Bank of Cleveland President Loretta Mester said even with a large amount of rate rises this year, the central bank has yet to get surging inflation under control and will need to press forward with tightening monetary policy.