Fed39;s Bowman reiterates holding rates steady 39;for some time39;
U.S. PCE data due on Friday

June 26 Reuters Gold prices were steady on Wednesday as investors awaited a report on the Federal Reserve39;s preferred inflation gauge due later this week for the latest clues on the central bank39;s rate cut prospects after some hawkish commentary this week.

Spot gold eased 0.1 to 2,317.86 per ounce by 0944 GMT, after hitting its lowest since June 18 earlier in the session. U.S. gold futures also fell 0.1 to 2,329.60.

Gold flashed red on Wednesday thanks to hawkish comments from a Fed official in the previous session and a stronger dollar, said FXTM senior research analyst Lukman Otunuga.

Fed Governor Michelle Bowman on Tuesday reiterated her view that holding the policy rate steady for some time will probably be enough to bring inflation under control, but also repeated her willingness to raise borrowing costs if needed.

Higher interest rates increase the opportunity cost of holding nonyielding bullion.

Meanwhile, Fed Governor Lisa Cook said at some point it will be time to cut interest rates.

The dollar rose 0.2 against its rivals, making gold more expensive for other currency holders, while benchmark 10year yields also edged higher. USDUS

This could be a wild week for gold due to economic and political forces. The Biden Vs. Trump face off and PCE report could inject the precious metal with renewed volatility. In the near term, support can be found at 2300 and…