WASHINGTON (dpa-AFX) - Gold futures settled flat on Tuesday after moving in a tight range, ahead of the Federal Reserve's monetary policy announcement, and key U.S. consumer inflation data.
A slightly stronger dollar weighed on the yellow metal. The dollar index, which climbed to 105.46, eased slightly to 105.30, but still remained above the flat line, gaining abut 0.14%.
Gold futures for June ended down $0.20 at $2,307.50 an ounce.
Silver futures for June settled at $29.133 an ounce, down $0.636 or about 2.1%, while Copper futures dropped to $4.5170 per pound, down $0.0395 or about 0.9%.
The Fed is widely expected to leave interest rates unchanged, but traders will pay closer attention to Fed officials' updated projections for the economy and rates.
Prospects of a rate cut this year appear to have faded a bit, with many analysts expecting the first rate cut by the Federal Reserve only in November.
Ahead of the Fed announcement, the Labour Department is scheduled to release its report on consumer price inflation for May. Economists expect consumer prices to inch up by 0.1% after an increase of 0.3% in April.
Core consumer prices, which exclude food and energy prices, are expected to increase by 0.3% for the second straight month.
The annual rate of growth by consumer prices is expected to come in unchanged at 3.4%, but the annual rate of core consumer price growth is expected to slow to 3.5% in May from 3.6% in April.
Later in the week, data on producer prices, import and export prices, as well reports on consumer sentiment and inflation expectations are due.
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