BENGALURU: Gold fell on Thursday as stock markets gained for a third straight day, but the metal held in a tight range ahead of next week’s Federal Open Market Committee meeting when the US central bank is widely expected to raise interest rates.

Spot gold eased 0.2 per cent to $1,242.79 per ounce at 1256 GMT, but was trapped in a $6 range, while US gold futures were down 0.2pc at $1,247.10 per ounce.

Gold’s direction in the near term would be determined by moves in the greenback, which could be pressured if the Fed takes a more cautious approach, analysts said.

Among other precious metals, spot palladium was down 0.5pc at $1,255.90 per ounce, having touched a record high of $1,269.25 earlier in the session.

The autocatalyst metal rose strongly on news that China would be reducing tariffs on US imported autos, raising hopes that the sector would be boosted by additional demand, analysts at ANZ said in a note.

Silver was down 0.2pc at $14.71 per ounce, while platinum was steady at $798.40.

Published in Dawn, December 14th, 2018