PRECIOUS-Gold edges higher as dollar eases ahead of Fed minutes, data

Kitco Media
By Reuters
Published:
Updated:
Reuters
Feb 21 (Reuters) - Gold prices ticked up on Tuesday as the dollar eased off a six-week high, while traders waited for more economic data to gauge the U.S. Federal Reserve's rate-hike strategy. FUNDAMENTALS
* Spot gold was up 0.1% at $1,843.23 per ounce, as of 0046 GMT. U.S. gold futures firmed 0.1% to $1,851.80.
* The dollar index was parked below recent peaks, making greenback-priced bullion less expensive for buyers holding other currencies.
* Investors are now awaiting minutes of the Fed's latest policy meeting due to be released on Wednesday. Money markets expect the U.S. central bank to raise benchmark rates above 5% by May, with a peak in rates seen at 5.3% in July.
* Higher interest rates increase the opportunity cost of holding zero-yield bullion.
* The U.S. core personal consumption expenditure (PCE) data due later this week is also on investors' radar.
* The European Central Bank should keep raising interest rates beyond March and the rate peak, which should be stuck to for some time, could be reached over the summer, Finnish central bank chief Olli Rehn told a German newspaper.
* Germany's economic prospects are improving after an unexpectedly resilient fourth quarter with headline inflation also past its peak, even if underlying price growth will take longer to abate, the Bundesbank said on Monday.
* Spot silver climbed 0.4% to $21.83 per ounce, platinum rose 0.2% to $928.65 and palladium firmed 0.1% to $1,512.07. DATA/EVENTS (GMT) 0815 France S&P Global Mfg, Serv, Comp Flash PMIs Feb 0830 Germany S&P Global Mfg, Serv, Comp Flash PMIs Feb 0900 EU S&P Global Mfg, Serv, Comp Flash PMIs Feb 0930 UK Flash Comp, Mfg, Serv PMIs Feb 1000 Germany ZEW Economic Sentiment Feb 1000 Germany ZEW Current Conditions Feb 1445 US S&P Global Mfg, Serv, Comp Flash PMIs Feb 1500 US Existing Home Sales Jan (Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu Sahu)

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