.DXY up 0.3
If Chinese economy recovers, gold jewellery demand will pick up analyst

Jan 18 Reuters Gold prices inched lower on Wednesday as the U.S. dollar firmed, while expectations of a slowdown in the pace of the U.S. Fed39;s interest rate hikes limited losses.

Spot gold dipped 0.3 to 1,902.59 per ounce, as of 0631 GMT, after hitting a session low of 1,896.32. Prices hit a near ninemonth high on Monday. U.S. gold futures fell 0.3 to 1,903.90.

Dimming appetite for the greenbackpriced bullion, the dollar index gained 0.3 as the yen sank after the Bank of Japan kept its yield curve controls in place.

Gold is pressured as the dollar is seeing a recovery, said Hareesh V, head of commodity research at Geojit Financial Services.

Recession worries and the Federal Reserve39;s policy decision would be the major catalysts for prices in the near future.

Investors now await the U.S. producer price index and retail sales data due later in the day.

Market focus is going to be on economic data. If the narrative continues to be that inflation is cooling and interest rates will come down, then it will be bullish for gold, said Edward Meir, a metals analyst at Marex.

The U.S. central bank raised rates by 75 basis points bps four times last year, before slowing to a 50bp increase in December. Traders are mostly pricing in a 25bp hike at the next policy meeting. FEDWATCH

Lower interest rates tend to be beneficial for bullion, decreasing the opportunity cost of holding the…