Bullion can take stride towards 3,000 level, says analyst
Fed expected to hold interest rates steady next week
Palladium up 1

Jan 23 Reuters Gold prices were little changed on Thursday, as market participants awaited further clarity on policies from U.S. President Donald Trump39;s administration.

Spot gold eased 0.1 to 2,753.14 per ounce by 0852 GMT, trading in a tight range of 8. Prices hit their highest since Oct. 31 on Wednesday.

U.S. gold futures shed 0.4 to 2,760.40.

Spot prices are flirting with technically overbought conditions, which suggests that a slight technical pullback is due, said Exinity Group chief market analyst Han Tan.

The Relative Strength Index is at 67, suggesting that gold price is approaching the overbought territory starting at 70.

Gold is set to take further strides towards the psychological 3,000mark if President Trump39;s policies in turn boost demand for inflation hedges and safe havens, Tan said.

Trump has proposed imposing tariffs of about 25 on Canada and Mexico, and 10 on China starting Feb. 1. He also mentioned potential tariffs on European imports, but did not provide specific details.

Gold is considered a safe investment amid economic and geopolitical turmoil, but higher interest rates reduce bullion39;s appeal as it yields no interest.

The Federal Reserve will meet on Jan. 2829 amid steady economic growth and falling inflation, but is likely to face uncertainty from Trump39;s proposed policies.

Traders expect a 96…