Gold rose on Tuesday, June 13, with the decline of the dollar, but the price movement remained in a narrow range, as dealers await the release of US inflation data later today and the US Federal Reserve's monetary policy decision tomorrow.
Gold in the spot market rose 0.2% to $1960.59 an ounce by 0426 GMT. US gold futures rose 0.3% to $1,974.60.
The dollar fell 0.2%, making gold denominated in the US currency more attractive to holders of other currencies.
Expert opinion
The market is waiting for US consumer price index data and the US Federal Reserve's Monetary Policy Committee meeting to set a clearer direction for gold prices, said Michael Langford, director at Airgide, a corporate advisory firm. But there is no reason for gold to outperform other asset classes, regardless of the Federal Reserve's decision-making process on monetary policy.
Economists polled by Reuters said the US consumer price index for May is expected to show a slowdown in year-on-year inflation to 4.1% from 4.9% in April and a monthly increase of 0.2%, down from 0.4% in the previous month.
The Fed and other central banks
According to the CME Group's Videowatch service, 81% of dealers expect the Federal Reserve to keep interest rates unchanged, while 19% of them expect to raise interest rates by 25 basis points.
The European Central Bank will announce its decision on interest rates on Thursday, and is widely expected to raise them by 25 basis points.
However, the Bank of Japan, which will announce its decision on Friday, is expected to continue its monetary easing policy.
other metals
Among other precious metals, spot silver rose 0.4% to $24.1395 an ounce. Platinum rose 0.5% to $994.47. Palladium rose 0.9% to $1,361.62.
