Gold firms on soft dollar

Gold climbed on Tuesday on a softer dollar, but was hemmed into a tight range as traders positioned for Federal Reserve Chair Jerome Powell’s speech and economic data that could offer clues on future interest rate hikes.

Spot gold gained 0.3% to $1,927.94 per ounce by 9:27 a.m. EDT (1327 GMT), set for its third straight daily rise, while U.S. gold futures rose 0.2% to $1,937.70.

“Gold is caught in the middle between a better-than-expected durable goods number, which keeps the Fed on path for a 1/4-point rate hike, and a weaker dollar,” said Bob Haberkorn, senior market strategist at RJO Futures.

New orders for key U.S.-manufactured capital goods unexpectedly rose in May, but the prior month’s data was revised down.

The dollar index (.DXY) eased 0.3%, making dollar-priced bullion more attractive for overseas buyers.

Prices edged up in the previous session on risks from the short-lived mutiny in Russia.

But for gold, “the key question is the extent to which the internal tensions within Russia or any potential toppling of the government might affect global monetary policy,” Commerzbank analysts wrote in a note.

Gold has shed about 1.7% this month – set for a second consecutive monthly fall if losses hold – as bets for higher-for-longer U.S. interest rates dented the zero-yielding asset’s appeal and overshadowed its traditional safe-haven role to some extent.

Investors were awaiting Fed Chair Jerome Powell’s upcoming speech, along with a trove of key economic data on Thursday.

“Between now and Thursday, you’re going to see a drifting, no-man’s-land trading, sideways market here in gold, unless something else was to break,” said Haberkorn.

Spot silver advanced 1.3% to $23.05 an ounce and was on track for a third straight session of gains.

Platinum rose 0.05% to $924.66 and palladium was up 0.4% to $1,311.40.