Gold jewelry on display in a shop window in the Gold Souk in the Deira district of Dubai, United Arab Emirates Image Credit: Bloomberg

Gold prices were flat on Wednesday on a firmer dollar, although the bullion was anchored in a narrow range with investors awaiting further guidance on U.S. Federal Reserve's policy tightening.


Spot gold was flat at $1,653.06 per ounce, as of 0118 GMT, while U.S. gold futures were down 0.2% at $1,654.20.

The dollar index was up 0.1%, reducing gold's appeal for overseas buyers. The greenback was, however, not far from the three-week low touched on Tuesday.

U.S. Senate Banking Committee Chair Sherrod Brown on Tuesday urged Fed Chair Jerome Powell to be careful about tightening monetary policy so much that millions of Americans already suffering from high inflation also lose their jobs.

The Fed is widely expected to deliver a fourth straight supersized interest-rate hike when they meet in November.

Rising interest rates dim bullion's appeal as they increase the opportunity cost of holding the non-yielding asset.

U.S. consumer confidence ebbed in October after two straight monthly increases amid rising concerns about inflation and a possible recession next year.

German business morale was nearly unchanged in October, defying forecasts of further decline thanks to an improvement in companies' expectations, a survey showed on Tuesday, even as analysts say all signs continue to point to a recession ahead.

Top gold consumer, China's net gold imports via Hong Kong halved from the previous month in September, data showed on Tuesday.

Spot silver fell 0.1% to $19.32 per ounce, platinum dipped 0.1% to $914.04 and palladium rose 0.9% to $1,940.55.