PRECIOUS-Gold subdued after mixed signals from U.S. Fed

Reuters

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    * Gold may test support at $1,769/oz - technicals
    * Two Fed officials say inflation pressures may last some
time

 (Adds comment, updates prices)
    By Eileen Soreng
    June 24 (Reuters) - Gold prices languished on Thursday as
investors tried to grasp mixed signals from U.S. Federal Reserve
officials on interest rate hikes and awaited more economic data
to gauge inflationary pressures. 
    Spot gold  XAU=  was down 0.1% at $1,776.20 per ounce by
0709 GMT, while U.S. gold futures  GCv1  fell 0.3% to $1,777.30.
Gold has risen 0.7% so far this week, after last week's 6%
decline. 
    "Now the focus is on inflation ... gold needs a clear
trigger to go higher than $1,800 but I am skeptical about that,"
said Jigar Trivedi, commodities analyst at Mumbai-based broker
Anand Rathi Shares.
    Two Fed officials said on Wednesday a period of high
inflation in the United States may last longer than anticipated,
with Atlanta Fed President Raphael Bostic expecting a rate hike
in late 2022.  urn:newsml:reuters.com:*:nL2N2O5161
    The remarks helped the dollar index  .DXY  steady near an
11-week high, after weakness earlier this week due to Fed
Chairman Jerome Powell's reassurance that interest rates would
not be hiked too quickly.  USD/ 
    Gold is often seen as a hedge against inflation, though a
rate hike by the Fed will increase the opportunity cost of
holding bullion and dull its appeal.
    Spot gold is biased to the downside and may test a support
at $1,769 per ounce, a break below which could open the way
towards the range of $1,734-$1,744 range, according to Reuters
technical analyst Wang Tao.  TECH/C 
    Investor focus is now on U.S. data on producer price
inflation due on Friday, while weekly figures later in the day
will show how the labour picture -- key for Fed policy -- is
shaping up.
    Silver  XAG=  rose 0.1% to $25.88 per ounce, palladium
 XPD=  edged 0.2% higher to $2,618.73 per ounce. Platinum  XPT= 
dropped 0.7% to $1,076.72. 

 (Reporting by Eileen Soreng, Brijesh Patel and Arundhati Sarkar
in Bengaluru, Editing by Sherry Jacob-Phillips, Aditya Soni)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))

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