PRECIOUS-Gold edges higher as dollar eases ahead of Fed minutes

Credit: REUTERS/Leonhard Foeger

By Brijesh Patel

Oct 12 (Reuters) - Gold prices edged higher on Wednesday helped by a slight pullback in the dollar, as investors look to minutes from the U.S. Federal Reserve's September policy meeting and inflation data for clues on its rate hike path.

Spot gold XAU= was up 0.2% at $1,668.40 per ounce at 0908 GMT, after falling for five straight sessions.

U.S. gold futures GCv1 slipped 0.6% to $1,675.50.

The dollar =USD eased 0.1% against its rivals, making gold less expensive for other currency holders. USD/

"There are some buying gold as they're seeing that the dollar is slightly slowing down. However, the market is now in a wait-and-see mood before the Fed minute and inflation report," said Carlo Alberto De Casa, external analyst for Kinesis Money.

"The data coming from inflation are very crucial because this is the very first thing that the Fed is observing in order to decide the next steps of the monetary policy."

Minutes from the Fed's latest meeting are due at 1800 GMT on Wednesday, followed by U.S. consumer price index data on Thursday, which is expected to remain stubbornly high.

The U.S. central bank has raised interest rates aggressively since March to tame runaway inflation, which has also weighed on gold's appeal as higher rates increase the opportunity cost of holding non-yielding bullion.

Federal Reserve Bank of Cleveland President Loretta Mester on Tuesday said the central bank had yet to get surging inflation under control and would need to press forward with tightening monetary policy.

On the physical front, Standard Chartered said in a note that with festival-wedding buying starting in India, demand would continue to firm, but was not expected to be as strong as in the fourth quarter of 2021. GOL/AS

Spot silver XAG= edged 0.1% lower to $19.18 per ounce, platinum XPT= rose 0.7% to $891.64 and palladium XPD= gained 0.6% to $2,153.55.

(Reporting by Brijesh Patel in Bengaluru; Editing by Nick Macfie)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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