Gold rises on weaker U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly on Wednesday as the U.S. dollar weakened.

The most active gold contract for April delivery rose 30 cents, or 0.01 percent, to close at 2,051.70 U.S. dollars per ounce.

Gold is near steady with no new fundamental developments to influence the market.

In a speech to the Brookings Institution on Wednesday, Federal Reserve Governor Adriana Kugler said it would be “appropriate” to lower U.S. interest rates if inflation continues to slow. But she stressed “it is critical” that inflation returns to the central bank’s target of 2 percent.

Kugler did not allude to when a rate cut might be suitable, indicating it would depend on how fast inflation decelerates.

In a speech on Wednesday to the Boston Economic Club, Boston Fed President Susan Collins said: “We are on a path to price stability with inflation durably at 2 percent.” If the progress continues, the Federal Reserve could begin “later in the year” to cut interest rates.

Still, Collins cautioned the Fed needs more evidence that a 2-percent rate of inflation can be sustained.

In an interview with MarketWatch on Wednesday, Richmond Fed President Tom Barkin said some of the recent progress on inflation might be a “head fake.”

It’s a good idea for the Federal Reserve to take its time with interest-rate cuts given all of the uncertainty about where the U.S. economy is headed, Barkin said. “In all honesty, my forecast is uncertain. That’s why I think it’s a reasonable idea to be patient.”

Investors are awaiting the release of inflation data on Tuesday next week.

Silver for March delivery fell 11.80 cents, or 0.52 percent, to close at 22.36 dollars per ounce. Platinum for April delivery fell 24.10 dollars, or 2.65 percent, to close at 886.90 dollars per ounce.