· Gold held steady on Wednesday, consolidating in a tight range, with the U.S. Federal Reserve's dovish stance on monetary policy offering limited support, while palladium stayed above the key $1,550 level and not far from its record high.
· Spot gold fell 0.7 percent at $1,319.31 per ounce at 1:37 p.m. ET, and U.S. gold futures settled $7.30 lower at $1,321.20.
· "The Fed is clearly in a dovish mode, but it has been less potent than normal because the dollar hasn't depreciated as much as it normally would have," said Macquarie commodity strategist Matthew Turner.
"Gold is a bit like riding a bicycle, you have to keep going forward to stay balanced, there has to be some story to be up a bit, and right now, we don't have that story."
· Gold has gained about 15 percent from a more than one-and-half-year low touched in mid-August last year.
· Providing a solid foundation for bullion was U.S. Fed chairman Jerome Powell's reiteration that the central bank would remain "patient" while deciding the future of interest rates.
· The dollar was little changed on Wednesday, but remained near a three-week low after shedding 0.4 percent post Powell's overnight comment.
· "In the very near term, we do have this major question mark around the trade tensions. If there were to be an agreement, it would provide a short-term boost to risky assets and that's a headwind for gold," Capital Economics analyst Ross Strachan said.
· On investors' radar is U.S-China trade relations, with U.S. President Donald Trump indicating he may soon sign a deal with Chinese President Xi Jinping to end a dispute blamed for slowing global economic growth.
· Meanwhile, spot palladium shed 2.28 percent to $1,524.50 per ounce. In the previous session, it hit a record peak of $1,565.09.
The autocatalyst metal has climbed 23 percent this year on widening supply tightness in the market, while threats of strikes by mineworkers in South Africa added further support.
· However, analysts suggest the strong rally in prices within a short span could trigger a correction, with the metal now slipping into overbought territory.
· Norilsk Nickel, the world's largest palladium producer, said tighter emissions regulations in all major markets and flattish primary supply would widen a palladium deficit in 2019.
· Elsewhere, silver fell 1.31 percent to $15.72 per ounce, while platinum rose 0.58 percent to $861.
Reference: CNBC
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