FX.co ★ Gold Holds Steady After Mixed Fed Remarks

Gold prices held steady on Tuesday as investors digested mixed comments from Federal Reserve officials and awaited a slew of key U.S. data this week for fresh insight on the Federal Reserve's rate path.

Spot gold was marginally lower at $2,026.86 per ounce, while U.S. gold futures traded with a positive bias at $2,040.55.

The dollar was little changed after Chicago Fed President Austan Goolsbee said on Monday that he was confused by market reaction to Fed Chief's remarks on possible rate cuts and the U.S. central bank is not precommiting to cutting rates soon and swiftly.

Cleveland Fed President Loretta Mester also said that financial markets had got "a little bit ahead" of the central bank with respect to rate cut expectations.

On the other hand, San Francisco Fed President Mary Daly said cuts to the U.S. central bank's benchmark rate are likely to be appropriate next year because of an improvement in inflation.

The Fed must make sure "we don't give people price stability but take away jobs," Daly told the Wall Street Journal in an interview.

The U.S. economic calendar remains busy this week, with investors keenly awaiting the latest readings on personal consumption expenditures, revised GDP, current account balance, home sales and initial jobless claims.

The Commerce Department's report on personal income and spending for November includes readings on inflation said to be preferred by the Fed.