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Singapore - Gold prices inched higher on Thursday, and the dollar edged lower, as investors reassessed expectations of the Federal Reserve's decision next week on monetary easing.
Most leading economists expect the Fed to buy between $80bn and $100bn worth of assets each month in a new programme to stimulate the economy, a Reuters poll showed.
"Gold prices are likely to be range-bound in the short term, as investors wait for the Fed's decision next week. We've seen different opinions on what the Fed would do and how the dollar would move," said Zhu Yilin, general manager of the research and development department of Jingyi Futures in Shanghai.
The range would be between $1 300 to $1 350, Zhu added.
On the physical market, Indian buyers were bargain hunting and scrap sellers were holding back for higher prices, dealers said.
Spot gold edged up 0.2% to $1 326.84 an ounce by 03:07 am, reversing losses in the previous session.
US gold futures rose 0.4% to $1 327.5 an ounce.
The Relative Strength Index, or RSI, on spot gold has retreated sharply from a heavily overbought level above 80 in early October. It dropped to 50.009, its lowest since early August, and bounced a touch to 50.486 on Thursday.
Spot gold is biased to return to the wave "A" or wave (2) high of $1 349.20 per ounce, even though its signal is mixed at the moment, said Wang Tao, a Reuters market analyst.
A short-covering bounce in the dollar paused on Thursday, but traders said a rise in US Treasury yields could prompt more buybacks in the greenback before the Federal Reserve's policy meeting next week.
Gold traders in India, the world's largest consumer of bullion, picked bargains for a second week in a row to stock for ongoing festival and wedding demand, and dealers said premiums steadied at their last week's levels of $1.10-$1.15 an ounce.
"Most of the buying happened in the last week and it's still continuing. October is turning out to be a good month," said Rahul Gupta, director with New Delhi-based retailer, PP Jewellers, referring to gold sales.
Scrap selling is scarce after gold prices retreated from record highs, dealers in Hong Kong said, resulting in a slight improvement in physical premiums, at about 80 cents to a dollar.
Spot silver climbed half a percent to $23.64 an ounce, after JPMorgan Chase & Co and HSBC Holdings were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices.
Palladium rose 0.6% to $616.55, after hitting a nine-year high at $636.25 in the previous session.
Most leading economists expect the Fed to buy between $80bn and $100bn worth of assets each month in a new programme to stimulate the economy, a Reuters poll showed.
"Gold prices are likely to be range-bound in the short term, as investors wait for the Fed's decision next week. We've seen different opinions on what the Fed would do and how the dollar would move," said Zhu Yilin, general manager of the research and development department of Jingyi Futures in Shanghai.
The range would be between $1 300 to $1 350, Zhu added.
On the physical market, Indian buyers were bargain hunting and scrap sellers were holding back for higher prices, dealers said.
Spot gold edged up 0.2% to $1 326.84 an ounce by 03:07 am, reversing losses in the previous session.
US gold futures rose 0.4% to $1 327.5 an ounce.
The Relative Strength Index, or RSI, on spot gold has retreated sharply from a heavily overbought level above 80 in early October. It dropped to 50.009, its lowest since early August, and bounced a touch to 50.486 on Thursday.
Spot gold is biased to return to the wave "A" or wave (2) high of $1 349.20 per ounce, even though its signal is mixed at the moment, said Wang Tao, a Reuters market analyst.
A short-covering bounce in the dollar paused on Thursday, but traders said a rise in US Treasury yields could prompt more buybacks in the greenback before the Federal Reserve's policy meeting next week.
Gold traders in India, the world's largest consumer of bullion, picked bargains for a second week in a row to stock for ongoing festival and wedding demand, and dealers said premiums steadied at their last week's levels of $1.10-$1.15 an ounce.
"Most of the buying happened in the last week and it's still continuing. October is turning out to be a good month," said Rahul Gupta, director with New Delhi-based retailer, PP Jewellers, referring to gold sales.
Scrap selling is scarce after gold prices retreated from record highs, dealers in Hong Kong said, resulting in a slight improvement in physical premiums, at about 80 cents to a dollar.
Spot silver climbed half a percent to $23.64 an ounce, after JPMorgan Chase & Co and HSBC Holdings were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices.
Palladium rose 0.6% to $616.55, after hitting a nine-year high at $636.25 in the previous session.
