Gold steadied as prospects for more tightening from major central banks and ebbing haven demand kept prices contained.

Bullion has mainly traded in a fairly narrow range between $1,940 and $1,980 an ounce this month, after dropping in May from a near record high. With the US debt-ceiling standoff resolved, traders are waiting for new catalysts to drive the precious metal.

The Federal Reserve paused tightening last week, but indicated more hikes were likely and that interest rates would go higher than previously expected. The European Central Bank also said it wasn't done with raising borrowing costs. Higher rates are usually negative for non-interest-bearing bullion.

Meanwhile, a surge in purchases by Chinese residents, driven by pent-up demand after three years of pandemic restrictions and optimism that the economy would quickly rebound, is starting to slow. Investors in exchange-traded funds have also been trimming their holdings in recent weeks.

Spot gold edged up 0.2% to $1,953.87 an ounce as of 9:12 a.m. in London. The Bloomberg Dollar Spot Index was little changed. Silver steadied, while palladium and platinum fell.

Source : Bloomberg