Gold gains on dollar dip; Fed policy cues in focus
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Gold prices rose on Tuesday, supported by a softer dollar, while market participants awaited more clarity on the U.S. Federal Reserve's rate-hike stance.
Spot gold was up 0.7% at $1,753.34 per ounce, as of 0651 GMT. U.S. gold futures rose 0.7% to $1,752.60.
Bullion prices fell about 1% in the previous session after hawkish comments from U.S. Federal Reserve officials. Fed Presidents James Bullard and John Williams said there was a long way to go to fight inflation.
"Gold is seeing a corrective rise after the preceding session. Also, the dollar is slightly lower," said DailyFX currency strategist Ilya Spivak.
The dollar index inched 0.4% lower, making gold cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding the non-yielding asset.
Investors' focus will now squarely be on Fed Chair Jerome Powell, who is due to speak at a Brookings Institution event on Wednesday.
"If Powell's speech strikes a tone that the market reads as not pushing the hawkish ball forward, then gold will have a bounce," said Spivak.
The ADP National Employment report and the U.S. Labor Department's non-farm payroll data are also due this week. The data could provide some further clues on the Fed's policy plan.
Meanwhile, Chinese police were out in force in Beijing and Shanghai to prevent more protests against COVID curbs.
Protests in China, the biggest consumer of gold in the world, and the resulting heavy security presence will impact spending and industrial activity over the following month, which will weigh on all metals, said Michael Langford, director at corporate advisory firm AirGuide.
Spot silver gained 1.4% to $21.20, platinum rose 1.1% to $999.54 and palladium was up 1.5% at $1,872.88.
