Gold prices were little changed on Wednesday, with markets awaiting a speech by Federal Reserve Chairman Jerome Powell for more signals on the US interest rate trajectory after dismal economic data.
Spot gold was steady at $1,701.43 per ounce by 0921 GMT. US gold futures edged 0.1 per cent lower to $1,705.80.
“Overall, the gold market is treading water because there are strong forces in both directions – we have physical jewellery demand which is very lacklustre and on the other hand we have demand coming from investors who are looking for protection for their capital,” said Commerzbank analyst Eugen Weinberg.
“Focus for today will be on what Powell will be saying after pressure from the White House to declare negative interest rates like in Europe,” he said.
He added that the chances of negative US rates were low.
US President Donald Trump again pushed the Fed to adopt negative rates after data showed US consumer prices dropped 0.8 per cent in April.A