Prices of gold marked higher on Wednesday on a weak dollar and weaker economic US data, but the metal traded in a tight range as investors looked forward to the rate decision from the Fed’s due to late in the day for fresh guidance on the future path of interest rates in the United States.
Gold for June delivery on the Comex division of the New York inched up $4.10, or 0.33%, to trade at $1,247.50 a troy ounce.
Spot gold had risen 0.2 percent to $1,245.40 an ounce, following a 0.4-percent gain in the previous session.
Tuesday’s data showed that orders for US durable manufactured goods recovered much less than expected in March as automobile demand, computers and appliances slumped, suggesting the slowdown in the sector of the plant is far from over .
The report also suggests that business spending and economic growth were weak in the first quarter. The outlook for the second quarter faded after another report showed an ebb in consumer trust in April.
The US dollar index, which measures the greenback force against a weighted basket of six major currencies, last stood at 94.41 range with little change for the day.
Yellow metal prices have risen nearly 17% so far this year since expectations faded that the Fed would move to normalize interest rates due to fears about a global economic slowdown led by China.
Imports of net Chinese gold through the main duct Hong Kong rose to a three-month in March on the replenishment after the New Year holidays, but market sources said that demand from consumers stays smooth.
At the Multi Commodity Exchange, gold for delivery in far-month August was up by Rs 100, or 0.34% to Rs 29,503 per 10 grams as speculators widened positions taking positive cues from global markets.
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