Gold stuck in a range as traders seek direction from US data
Gold traded in a narrow range on Wednesday (26 April), with a subdued dollar and recessionary fears lending some support to the safe-haven asset, while investors sought more clarity on the Federal Reserve's rate-hike trajectory from upcoming US economic data.
Spot gold XAU= held steady at $1,998.50 per ounce by 0724 GMT, trading in a $9 range, while U.S. gold futures GCv1 ticked 0.1% higher to $2,007.40 per ounce.
Investors seemed reluctant to offload their gold holdings amid weak US economic data.
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"Trading conditions will remain choppy, and any dips towards $1,950 could be snapped up," said Matt Simpson, a senior market analyst at City Index.
Recessionary fears already seem to be providing a floor for gold prices, and Friday's personal consumption expenditures report will likely "pack the biggest punch for gold," Simpson added.
Data on Tuesday showed US consumer confidence dropped to a nine-month low in April as worries about the future mounted, further heightening the risk that the economy could fall into recession this year.
The dollar index .DXY inched 0.3% lower, making gold less expensive for overseas buyers.
Investors will closely watch US quarterly gross domestic product data scheduled for Thursday, followed by the reading on the core PCE index on Friday, ahead of the Fed's 2-3 May meeting.
Market participants widely expect the Fed to hike interest rates by 25 basis points.
Although gold is considered a hedge against inflation and economic uncertainty, higher interest rates dim the non-yielding asset's appeal.
Australian inflation, meanwhile, eased from 33-year highs in the first quarter as the cost of living saw the smallest rise in more than a year, while core inflation dipped below forecasts, suggesting less pressure for another hike in interest rates.
Elsewhere, spot silver XAG= was flat at $25.05 per ounce, while platinum XPT= rose 0.9% to $1,096.21.
Palladium XPD= climbed 2.2% to $1,516.28, set to break a two-day losing streak if gains hold.
