Gold prices little changed, market cautious ahead of Fed rate decision(June 7)

Gold prices were flat on Wednesday, June 7, as cautious traders awaited an interest rate decision at the U.S. Federal Reserve’s policy meeting next week, while a weaker dollar supported gold. The dollar index eased slightly against a basket of currencies, making gold cheaper for overseas buyers. Ahead of the Fed‘s policy decision, the U.S. consumer price report for May on June 13 will give investors a clearer picture of the economy’s health following recent economic data and dovish comments from Fed officials. Fed funds futures showed traders see an 80.6 percent chance the Fed will keep rates in the 5 percent to 5.25 percent range, according to CME Group’s Fedwatch tool. But they also see a 51 percent chance of another 25 basis point hike in July.