Gold appreciates thanks to a weaker dollar; focus is on Fed minutes

By Seher Dareen

Feb 20 (Reuters) – The price of gold rose on Monday, supported by a weaker dollar, as investors waited for upcoming U.S. economic data to chart the course for future Federal Reserve rate hikes.

* As of 09:31 GMT, spot gold was up 0.2% at $1,844.34 an ounce, after hitting its lowest level since late December the previous day. U.S. gold futures also rose 0.2% to $1,853.70.

* “We continue to expect higher prices over the next few quarters, but in the near term, I think gold will remain volatile until US economic data indicates a slowdown in economic activity,” said Giovanni Staunovo, an analyst at UBS.

* Last week’s economic data showed signs of resilience in the US economy and tightness in the labor market, raising concerns that the Fed will hold rates higher for longer.

* Investors’ attention will turn to the release of the Fed’s January FOMC meeting minutes and US GDP data for more clues on the path of rate hikes.

* The dollar index fell slightly from a more than a month high hit on Friday, making bullion – priced at the greenback – more attractive to buyers holding other currencies.

* In other precious metals, spot silver rose 0.6% to $21.85 an ounce; Platinum rose 1.1% to $926.67; and palladium rose 0.3% to $1,503.12.

* Liquidity is expected to be tight on the day as US markets will be closed for Presidents’ Day.

(Edited in Spanish by Carlos Serrano)