2023.06.0710:05:00UTC+00Gold Holds Steady Ahead Of Central Bank Meetings

Gold prices held steady on Wednesday and the dollar wobbled as investors looked ahead to key central bank meetings in the U.S., Europe and Japan next week.

Spot gold was marginally higher at $1,963.93 per ounce, while U.S. gold futures were down 0.1 percent at 1,979.55.

Traders remained reluctant to make significant moves ahead of next week's Federal Reserve meeting.

As the inflation situation improves, the Fed is widely expected to pause its recent series of interest rate hikes.

Key inflation reports are also likely to be in the spotlight next week, as the data could impact whether the Fed resumes its rate hikes next month.

CME Group's FedWatch Tool is currently indicating a 79.4 percent chance the Fed will leave rates unchanged next week but a 52.7 percent chance of another quarter point increase in July.

The European Central Bank may hike rates by 2 basis points and possibly leave the door open for further monetary policy tightening.

The Bank of Japan is expected to maintain its ultra-loose monetary policy stance.