GOLD struggled for momentum in early Asian hours on Monday (Mar 18) as the US dollar held firm and investors braced for a series of major central bank policy meetings including the US Federal Reserve this week.
Spot gold was little changed at US$2,156.69 per ounce, as at 0059 GMT. US gold futures inched 0.1 per cent lower to US$2,159.90.
The Federal Open Market Committee is scheduled to begin its two-day meeting on interest rates on Tuesday. It will announce its rate decision on Wednesday, followed by a statement.
The Fed is considered certain to keep rates at 5.25 to 5.5 per cent, but there is a possibility it might signal a higher-for-longer outlook on policy given the stickiness of inflation at both a consumer and producer level.
Higher interest rates reduce the appeal of holding non-yielding gold.
Last week, data showed that US consumer prices increased solidly in February and producer prices rose more than expected amid a surge in the cost of goods such as petrol and food.
The US dollar held firm near a two-week high against its rivals, making gold more expensive for other currency holders.
Meanwhile, the Bank of Japan is expected to exit its ultra-dovish monetary policies at its two-day meeting ending on Tuesday.
The Bank of England will hold its meeting on Thursday and is expected to stay put on rates, while markets see some chance the Swiss National Bank might ease this week.
Spot platinum rose 0.2 per cent to US$935.15 per ounce, palladium gained 0.2 per cent to US$1,080.02, while silver was steady at US$25.18. REUTERS
