Gold little changed as Fed remarks boost dollar

BENGALURU, Nov 28 (Reuters): Gold prices were tepid on Wednesday pressured by a robust dollar after a senior U.S. Federal Reserve official reaffirmed the need for a further increase in interest rates, making bullion more expensive for holders of other currencies.

Fed Vice Chair Richard Clarida said on Tuesday the central bank should continue to gradually raise interest rates, but it was "especially important" to monitor economic data as monetary policy was getting close to a neutral stance.

"The strength of the US dollar has been bad for gold, while the Fed is little more bullish about interest rates," said John Sharma, an economist with National Australia Bank (NAB).

Prospects of higher US interest rates are negative for dollar-priced gold as they raise the opportunity cost of holding the bullion.

Investor attention is now turned towards Fed Chairman Jerome Powell's speech later on Wednesday and the minutes from the Fed's Nov. 7-8 meeting on Thursday, as they look for indications on U.S. rates hikes in 2019.

Spot gold was little changed at $1,213.71 per ounce at 0408 GMT, having dipped to its lowest level since Nov. 15 at $1,211.36 in the previous session.

US gold futures were down about 0.1 per cent at $1,214.