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Gold Flat Ahead Of FOMC

4/3/2012 7:05 AM ET

The price of gold was little changed Tuesday morning as the U.S. dollar was ticking lower ahead of the release of FOMC minutes, due out later today.

Gold for June delivery, the most actively traded contract, edged down $1.20 to $1,678.50 an ounce. Yesterday, gold extended gains for a second day with some positive economic data on the U.S. manufacturing sector activity, while the dollar weakened against a basket of currencies.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,286.62 tons.

This morning, the U.S. dollar continued to trade flat versus the euro, while ticking higher against sterling. The buck was edging higher versus the yen, after falling heavily in the previous session amid expectations for further monetary easing by the Bank of Japan to boost economic growth.

In economic news, euro zone producer price inflation eased to 3.6 percent year-on-year in February from a revised 3.8 percent in January, Eurostat said. The inflation rate, nonetheless, stayed above the consensus forecast of 3.5 percent. On a monthly basis, the industrial producer price index climbed 0.6 percent, following a 0.8 percent gain in January. Economists were expecting an increase of 0.5 percent.

Elsewhere, the price of silver was ticking lower, while platinum edged up in morning deals.

From the U.S., the Commerce Department will release its report on factory goods orders for February at 10 a.m. ET. Economists estimate a 1.5 percent increase in orders for factory goods following a 1 percent drop in the previous month. Durable goods orders, which make up the bulk of factory goods, rose by a less than expected 2.2 percent in February compared to the previous month.

The Federal Reserve is due to release the minutes of its March 13th meeting at 2 pm ET.

by RTT Staff Writer

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