June 6 (Reuters) – Gold prices traded in a tight range on Tuesday, as investors awaited more cues to assess the Federal Reserve’s interest rate path ahead of its policy meet next week.
Spot gold was up 0.1% at USD 1,964.27 per ounce by 1:49 EDT (1749 GMT).
US gold futures settled up 0.4% at USD 1,981.50.
The dollar index and benchmark 10-year Treasury yields ticked up, making dollar-priced, zero-yielding bullion less attractive.
“There’s nothing out there on the surface that says, gold should be positive … It’s a wait-and-see type of moment,” said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago.
Investors now expect a 79% chance that the US central bank will hold interest rates at its June 13-14 policy meet, according to CME Group’s FedWatch tool, following 10 straight rate increases.
World shares edged higher as investors mulled whether a recent rally in stocks has legs to run further.
Gold was stabilizing in light of the jobs report on Friday and with an eye on the Fed policy-setting meeting next week, said Craig Erlam, senior market analyst at OANDA, adding that there was still uncertainty on the rate-hike path as the ISM data showed weakness across the board.
Traders will closely watch the Consumer Price Index data due on June 13, before the Fed’s rate decision.
“Next week is jam-packed with a ton of market-moving data … I am taking a more calculated risk approach,” Streible added.
The World Bank raised its 2023 global growth forecast as the US and other major economies have proven more resilient than forecast but said higher interest rates would cause a larger-than-expected drag next year.
In other metals, spot silver was little changed at USD 23.57 per ounce, platinum gained 0.2% to USD 1,032.80, while palladium eased 0.1% to USD 1,412.81.
(Reporting by Ashitha Shivaprasad and Deep Vakil in Bengaluru; Editing by Vinay Dwivedi, Aurora Ellis, and Shilpi Majumdar)