Gold Marginally Higher Ahead Of PCE Price Data

(RTTNews) - Gold prices were little changed on Thursday as investors reacted to escalating Middle East tensions and pondered the outlook for U.S. monetary policy.

Spot gold edged up 0.2 percent to $4,074.18 an ounce while U.S. gold futures were up 0.8 percent at $4,070.

The dollar found its footing after weakening on Wednesday as the Federal Reserve held its federal funds target range steady at 3.5-3.75 percent despite three officials voting for an increase in rates.

The rare 9-3 split vote highlighted internal divisions over the path forward for policy.

Fed Chair Kevin Warsh pledged an unwavering commitment to bring inflation down but said little about the mix of risks and nothing about the outlook for the policy rate.

U.S. 30-year Treasury yields hovered near 19-year highs as focus shifted to the U.S. PCE price data due later in the day that might provide further insights into the inflation outlook and the likely path of interest rates.

Elsewhere, the Bank of England is widely expected to keep the benchmark Bank Rate steady at 3.75 percent for the fifth straight meeting later today, with traders looking for any clues about whether it will raise rates in future.

Brent crude futures edged up slightly toward $91 a barrel after climbing 7.9 percent in the New York trading session as the United States carried out fresh strikes on Iran, further intensifying a five-month-old war that is spreading beyond its main fronts to embroil more countries across the region.

The latest escalation came after a drone struck a U.S.-owned gas storage tanker at Egypt's Mediterranean port of Damietta and Iran fired missiles targeting U.S troops in Jordan.

Supply worries were compounded after U.S. President Trump vowed to hit Iran "hard" in response to attacks on American forces in the Middle East.

U.S. and Saudi fighter aircraft struck multiple terrorist logistics and weapons sites across eastern Iraq in a strong response to over 30 IRGC-directed aerial drone attacks in the last 72 hours, Centcom said.