Mumbai, 27 Mar (Commoditiescontrol): Gold prices were largely unchanged on Wednesday, supported by lower U.S. Treasury yields, although bullion traded in a narrow range as investors stayed on the sidelines awaiting more cues on the Federal Reserve policy.
Spot gold was steady at $2,178.31 per ounce, following two session on gains. U.S. gold futures edged 0.1% lower to $2,173.70 per ounce.
U.S. bond yields retreated slightly on Tuesday after strong demand at an auction of $67 billion in five-year notes.
Investors now look forward to U.S. core personal consumption expenditure price index data due on Friday to gauge when the Fed may begin cutting interest rates.
Data on Tuesday showed orders for long-lasting U.S. manufactured goods increased more than expected in February, while business spending on equipment showed tentative signs of recovery.
Gold prices hit a record high last week after Fed policymakers indicated they still expect to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
Chicago Fed President Austan Goolsbee said on Monday at the Fed's policy meeting last week that he penciled in three rate cuts for this year.
Traders are pricing in a 72% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduces the opportunity cost of holding bullion.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.62% to 830.15 tons in the previous session from 835.33 tons on Monday.
Meanwhile, China's net gold imports via Hong Kong slumped about 48% in February to the lowest level since November, data showed on Tuesday.
Spot silver was steady at $24.42 per ounce, platinum rose 0.1% to $903.70 and palladium eased 0.3% to $990.98.
(By Commoditiescontrol Bureau: 09820130172)
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