Gold steady as dollar strength limits demand

Gold traded close to unchanged on Tuesday, although spot prices were up 0.33% at $4,007.96 an ounce at 10:21 am PST, Mettis Global reported. A firm US dollar curbed demand by making bullion priced in dollars costlier for buyers using other currencies. Investors were also awaiting the Federal Reserve’s policy announcement for guidance on the interest-rate outlook.

Gold had slipped below $4,000 last week and recorded a 4% weekly decline, its sharpest in about four months, amid inflation concerns linked to higher energy prices. Policymakers are expected to keep rates unchanged at this week’s meeting, but traders see an 11% chance of a hike now and an 82% chance of an increase in December, according to the CME FedWatch Tool. Silver fell 0.7% to $53.53 an ounce, while platinum and palladium declined 0.8% and 1.5%, respectively.