Gold steadies as focus turns to Fed decision

LONDON, Mar 16 (Reuters): Gold steadied on Wednesday, with a weaker dollar offsetting pressure from higher US Treasury yields as investors await the first pandemic-era US Federal Reserve interest rate hike.
Spot gold was steady at $1,916.71 per ounce at 1226 GMT after touching its lowest since March 1 at $1,906 on Tuesday. US gold futures fell 0.4 per cent to $1,922.00.
"Bullion bears are taking a breather as they await the Fed's highly anticipated policy guidance," Han Tan, chief market analyst at Exinity, said.
"Once gold markets have fully digested the Fed's policy signals, attention could swiftly return to the ever-evolving Russia-Ukraine war," Tan said, adding that any escalation of the crisis would lead to further gold price rises.
Gold is highly sensitive to rising US interest rates, and consequently higher yields on benchmark US 10-year Treasury notes, which increase the opportunity cost of holding non-yielding bullion.
Gold was holding up well despite a wider risk-on sentiment, said Quantitative Commodity Research analyst Peter Fertig.
Spot silver was flat at $24.86 per ounce, while platinum rose 2.2 per cent to $1,007.57.
Palladium gained 1.9 per cent to $2,470.66, inching away from Monday's more than two-week low, amid receding supply fears.