Gold steady as Middle East tensions rise, Fed decision on tap
[BENGALURU] Gold prices held steady on Wednesday (Jun 18), as escalating tensions between Israel and Iran entered their sixth day, while a stronger US dollar capped gains ahead of the US Federal Reserve's policy decision due later in the day.
Spot gold was steady at US$3,386.59 an ounce, as at 0052 GMT. US gold futures were also stable at US$3,405.20.
Iran and Israel launched new missile strikes at each other on Wednesday as the air war between the two longtime enemies entered a sixth day despite a call from US President Donald Trump for Iran's unconditional surrender.
Trump warned on social media on Tuesday that US patience was wearing thin.
Meanwhile, the US is deploying more fighter aircraft to the Middle East and extending the deployment of other warplanes, three US officials told Reuters.
The US dollar index strengthened against major currencies, making US dollar-priced bullion more expensive for holders of other currencies.
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Federal Reserve officials met on Tuesday armed with new economic data that could give more weight to their concerns that Trump administration policies, or at least the intense uncertainty around them, will slow growth in the coming months.
US retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariff-related price hikes ebbed, but consumer spending remains supported by solid wage growth for now.
The Fed is widely expected to leave its benchmark overnight interest rate unchanged in the 4.25 to 4.5 per cent range.
Investors will watch closely for Fed chair Jerome Powell's remarks following the decision for signals on the future monetary policy path.
Elsewhere, spot silver was down 0.3 per cent at US$37.14 per ounce, platinum rose 0.2 per cent to US$1,264.63, while palladium fell 0.4 per cent to US$1,047.50. REUTERS
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