The US Fed is likely to deliver another 75 bps rate hike, increasing the opportunity cost of holding bullion
Bengaluru — Gold prices eased on Wednesday as the dollar firmed, though bullion still traded in a narrow range as investors awaited fresh cues from top central banks on their monetary policy plans, especially from the US Federal Reserve.
The dollar strengthened towards recent two-decade peaks, making greenback-priced bullion more expensive for buyers holding other currencies. Market participants are also eyeing Fed chair Jerome Powell’s testimonies in Washington DC this week. “If Powell is hawkish tonight, we could see another bout of US dollar strength as yields rise again. That would push gold lower. Otherwise, I foresee minimal impact,” Halley added.
Meanwhile, gold could be among assets that may be targeted in a possible next round of EU sanctions on Russia, a draft document showed.