Gold prices edge lower on steady dollar, Fed rate-hike jitters
Gold prices inched lower on Wednesday as the dollar steadied, while the U.S. Federal Reserve's commitment to tightening monetary policy also weighed on zero-yield bullion's appeal.
FUNDAMENTALS
* Spot gold was down 0.1% at $1,650.75 per ounce, as of 0125 GMT.
* U.S. gold futures were up 0.1% at $1,657.30.
* The dollar index was a tad bit higher in early Asian hours, having bounced off its lowest level since Oct. 6 overnight. [USD/]
* The U.S. central bank may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising, Minneapolis Fed President Neel Kashkari said on Tuesday.
* Production at U.S. factories rose in September indicating the manufacturing sector remains on reasonable footing despite the Fed's efforts to hamper demand and lower inflation.
* Although traditionally seen as a hedge against inflation, interest rate hikes to control soaring prices have reduced bullion's appeal since it yields no interest.
* Delegates from around the world meeting at the London Bullion Market Association's annual precious metals conference in Lisbon predicted that gold prices would rise to 1,830.50 an ounce in a year's time, up from around $1,650 on Tuesday.
* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell by 0.29 tonnes on Tuesday.
* Russia's central bank sees no need in raising gold holdings in its gold and forex reserves, its deputy governor, Alexei Zabotkin said on Tuesday, shrugging off a plea from the gold miners to increase state purchases amid Western sanctions.
* Spot silver eased 0.2% to $18.72 per ounce, platinum was 0.3% higher at $909.88 and palladium rose 0.3% to $2,019.75.
