Gold is locked in a narrow range as investors await the path of Fed

Gold prices settled in a narrow range on Friday after caution prevailed ahead of next week’s much-watched Federal Reserve meeting for any signs of a slowing in interest rate hikes.

Gold prices did not witness little change in spot transactions and amounted to $ 1663.62 an ounce by 0521 GMT, while US gold futures rose 0.1 percent to $ 1666.30

While the Fed will likely announce another 75 basis points increase in interest rates at its meeting next week, traders expect a half point increase in December.

The sharp hike by the US central bank in interest rates since March has led to a 9 percent drop in gold this year, because it increased the opportunity cost of holding the non-yielding precious metal while strengthening the dollar at the same time.

As for other precious metals, silver fell in spot transactions 0.7 percent to $ 19.44 an ounce.

Platinum settled at $960.13, but rose more than two percent during the week. And palladium rose 0.3 percent to $ 1946.63, but it is headed for a weekly decline of more than three percent.