Gold subdued, investors await FOMC minutes

NEW YORK (Feb 20) Gold prices continue to hover around a six-week low on Monday, as investors await more cues on the direction of US monetary policy.

The Federal Reserve has indicated it has enough impetus to keep raising interest rates in the near term, resulting in three straight weeks of losses for gold.

The Fed's hawkish stance has resulted in uncertainty over where US interest rates will peak this year, with some analysts suggesting a potential terminal rate of over 6%. The opportunity cost of holding non-yielding assets such as gold is increased by rising US Treasury yields due to higher interest rates.

Spot gold remained unchanged at $1,837.89 an ounce, while gold futures were little changed at 1,846.95 an ounce. Both instruments were nursing three straight weeks of losses.

Fed speakers, including Atlanta Fed President Ralph Bostic and Cleveland Fed President Loretta Mester, are expected to provide more signals on US monetary policy this week. Also, the minutes of the Fed's February meeting are due on Wednesday at 7 pm GMT.

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