Gold is locked in a narrow range ahead of data

Gold rose slightly on Tuesday, as it was confined to a narrow range as investors refrained from forming large positions ahead of the release of US economic data that may affect the Federal Reserve’s interest rate strategy.

Gold rose 0.1 percent to $1,842.37 an ounce at 0245 GMT, while it is trading in a $4 range. US gold futures also rose 0.1 percent, to $1,852.10.

High interest rates discourage investors from putting money into non-yielding assets such as gold.

Gold prices hit their highest levels since April 2022 this month, but have since lost about $120 after a series of economic data showed signs of resilience in the US economy and labor market scarcity, raising fears that interest rates will remain high for a longer period.

The minutes of the Fed’s last policy meeting will be released on Wednesday. Financial markets expect the bank to raise benchmark interest rates above 5 percent by May, and to a peak of 5.3 percent in July.

Investors are also awaiting core personal consumption expenditures in the US, which is the Federal Reserve’s preferred measure of inflation, and GDP figures due this week.

The dollar index rose 0.1 percent, making bullion priced in the US currency more expensive for buyers holding other currencies.

In terms of other precious metals, silver rose 0.1 percent to $21.76 an ounce, platinum rose 0.2 percent to $928.26, and palladium rose 0.2 percent to $1507.90.