June 9, 2020 / 3:14 AM / a month ago

PRECIOUS-Gold ticks up, moves in tight range ahead of U.S. Fed meeting

    * Recovery hopes push stocks higher
    * Dollar hovers near three-month low
    * Fed statement due at 1800 GMT on Wednesday

 (Updates prices)
    By Brijesh Patel
    June 9 (Reuters) - Gold prices edged higher on Tuesday
buoyed by a weaker dollar, but the metal traded in a narrow
range as caution set in ahead of the U.S. Federal Reserve's
two-day monetary policy meeting.
    Spot gold        was up 0.1% at $1,695.69 per ounce by 0702
GMT. U.S. gold futures         eased 0.2% to $1,701.20.
    "Given the enthusiasm for risk and growth exposed assets, we
could see pressure come to gold during the session, but on the
other hand the weaker U.S. dollar is supportive," said Michael
McCarthy, chief strategist at CMC Markets.
    The U.S. dollar        hovered near a three-month low,
making gold cheaper for holders of other currencies.       
    Investors' focus is now on the U.S. central bank's two-day
monetary policy meeting, starting later in the day, for any
forward guidance as economy gradually starts showing signs of
recovery.
    Traders stopped pricing for the possibility of negative
rates in the United States, following a surprisingly strong
employment report last Friday.             
    Limiting gold's advance, market participants favoured
riskier assets as confidence in an economic recovery pushed the
Nasdaq benchmark to a record high. Asian stocks were also set to
climb.            
    "The yellow metal is on a reasonably steady downtrend, most
likely on the back of the great run in equity markets over the
past few weeks, which could see fast money continue to sell on
rallies," said Stephen Innes, chief market strategist at
financial services firm AxiCorp, in a note.
    Meanwhile, the World Health Organization on Monday warned
that the COVID-19 pandemic is "far from over," as a record
number of new daily infections were reported.             
    Among other precious metals, silver        dropped 1.6% to
$17.57 an ounce, palladium        fell 1.8% to $1,986.40, and
platinum        eased 0.4% to $829.58.

 (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi
Aich)
  
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