*
Fed minutes, U.S. GDP data due this week
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Thin trade on Monday due to Presidents' Day holiday in
U.S.
(Updates prices)
By Seher Dareen
Feb 20 (Reuters) - Gold prices edged higher on Monday on
a slightly weaker dollar, as investors looked out for upcoming
U.S. economic data for clues on the Federal Reserve's rate hike
path.
Spot gold was up 0.2% to $1,845.93 per ounce at 9:43
a.m. ET (1443 GMT), after falling to its lowest since late
December in the previous session. U.S. gold futures gained 0.3% to $1,855.10.
"We still look for higher prices over the coming quarters,
but near term, I think gold will stay volatile until U.S.
economic data indicates a slowdown in economic activity," said
UBS analyst Giovanni Staunovo.
Economic data last week showed signs of a resilient U.S.
economy and a tight labour market, sparking speculation the Fed
would keep interest rates higher for longer.
Investor attention will be on the release of the Federal
Open Market Committee's January meeting minutes and U.S. GDP
data.
Several Fed officials last week signalled that more rate
hikes were needed to bring inflation down to the central bank's
2% target.
"Further dollar-led weakness could see gold target support
in the $1,792 to $1,776 area with resistance at $1,872," Saxo
Bank analyst Ole Hansen said in a note.
The dollar index was slightly lower on the day,
making greenback-priced gold less expensive for holders of other
currencies. Markets expect the Fed funds rate to peak just under 5.3% by
July, with analysts seeing the dollar having run its course for
now. Benchmark U.S. Treasury yields reached their highest in over
three months on Friday as well. Higher interest rates discourage investment in non-yielding
gold, although it is considered a hedge against soaring prices.
Spot silver rose 0.4% to $21.80 per ounce, platinum jumped 1.4% to $929.53 and palladium was up 1.3%
to $1,517.87.
Liquidity is expected to be thin on Monday, with U.S.
markets closed for Presidents' Day.
(Reporting by Seher Dareen in Bengaluru; Editing by Shounak
Dasgupta and Mark Potter)
