Recessionary fears providing floor for gold prices analyst
U.S. PCE data due this week

April 26Reuters Gold prices stuck to a narrow range on Wednesday as traders strapped in for U.S. economic data for further guidance on the Federal Reserve39;s monetary policy stance.

Spot gold was little changed at 1,995.67 per ounce by 0825 GMT, while U.S. gold futures rose 0.1 to 2,006.70.

Market is focused on the U.S. quarterly gross domestic product data due on Thursday, followed by the reading on the core PCE index on Friday, ahead of the Fed39;s May 23 policy meeting.

All eyes will be on the tone that Fed strikes in the upcoming meeting, said Michael Hewson, chief market analyst at CMC Markets.

Further weakness in yields should be positive for gold as long as 1,960 holds on the downside, but much will depend on whether the Fed signals a pause when it makes its decision next week.

Traders are mostly expecting the U.S. central bank to raise rates by 25 basis points in the upcoming meeting.

Gold is considered an inflation hedge and safe investment amid economic uncertainties, but rising rates dent the nonyielding bullion39;s allure.

U.S. consumer confidence dropped to a ninemonth low in April as worries about the future mounted, further heightening the risk of a recession later this year.

Recessionary fears already seem to be providing a floor for gold prices, said Matt Simpson, a senior market analyst at City Index.

Meanwhile, spot silver fell 0.5 to 24.93 per…