Gold lacks momentum as traders seek more Fed cues

SINGAPORE, Nov 09 (Reuters): Gold prices retreated for a third straight session on Wednesday as investors looked for fresh cues on the US central bank's interest rate stance, while palladium hit a five-year low.

Spot gold was down 1 per cent at $1,947.89 per ounce by 3:01 p.m. ET (2001 GMT), logging its biggest daily drop since Oct. 2. US gold futures settled 0.8 per cent lower at $1,957.8.

Silver fell 0.5 per cent to $22.52 per ounce.

"Traders will start looking at economic data and potential actions from the US central bank. Gold will react based on whatever the data is showing," said Daniel Ghali, commodity strategist at TD Securities.

"It is hard to see a catalyst for further upside in gold without a notable deterioration in the data."

A slew of Federal Reserve officials on Tuesday maintained a balanced tone on the central bank's next decision, but noted they would focus on more economic data and impact of higher long-term bond yields.