Gold may test support at 1,769oz technicals
Dollar index hovers below 11week high
Two Fed officials say inflation pressures may last some time Adds details and updates prices
June 24 Reuters Gold prices edged lower on Thursday, pressured by a steady dollar, while investors attempted to navigate mixed signals from Federal Reserve officials on interest rate hike and awaited more U.S. economic data to gauge inflationary pressures.
Spot gold was down 0.3 at 1,774.32 per ounce by 0452 GMT. U.S. gold futures fell 0.5 to 1,774.40.
The dollar index held firm near an 11week high against its rivals.
With a lack of clear direction and contradictory themes coming from Fed officials and the news headlines, expect gold to continue its choppy rangebound trading, Jeffrey Halley, a senior market analyst at OANDA said.
The market remains nervous about earlier liftoff entrenched inflation type headlines and so gold will remain a sell on rallies into the end of the week.
Two Fed officials on Wednesday said that a period of high inflation in the United States may last longer than anticipated, a day after Fed Chair Jerome Powell downplayed inflation worries and signalled interest rates would not be hiked too quickly.
However, Atlanta Fed President Raphael Bostic expects interest rates will need to rise in late 2022 as inflation is well above Feds 2 target.
Gold is often seen as a hedge against inflation, though a rate hike by the Fed will increase the opportunity cost of…