Gold flat as market focus turns to Fed meeting
Spot gold was little changed at $2,160.97 per ounce, as of 0126 GMT. U.S. gold futures were flat at $2,164.40.
were flat on Tuesday as investors stayed on the sidelines ahead of the 's policy meeting this week that could offer further clues on the timing of likely this year. FUNDAMENTALS* Spot gold was little changed at $2,160.97 per ounce, as of 0126 GMT. U.S. gold futures were flat at $2,164.40.
* Focus is on the outcome of the Fed's two-day concluding on Wednesday. The U.S. central bank is widely expected to hold rates steady, and the market is awaiting policymakers' updated economic and interest rate projections.
* Gold prices fell 1% last week after data showed that U.S. consumer prices increased solidly in February and producer prices rose more than expected, reducing hopes around early Fed rate cuts.
* Higher interest rates reduce the appeal of holding non-yielding gold. Traders are currently pricing in an about 51% chance of a rate cut from the Fed in June, compared with 56% on Monday, according to the CME FedWatch Tool.
* The dollar hovered near a two-week high against its rivals, making gold more expensive for other currency holders.
* Apart from the Fed, central banks in Japan, England, Australia, Norway, Switzerland, Mexico, Taiwan, Brazil and Indonesia are all meeting this week, with most expected to stand pat on rates.
* SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.18% to 833.32 tonnes on Monday from 831.84 tonnes on Friday.
* Spot silver gained 0.2% to $25.09 per ounce, platinum was steady at $915.15 per ounce, palladium slipped 1% to $1,022.21.
