Gold was mostly unchanged on Tuesday after hitting a two-week low in the previous session as the market waited for more clues from the US Federal Reserve later this week on whether it will raise rates this year. Spot gold was nearly flat at $1,338.86 an ounce at 0654 GMT. The metal hit a two-week low of $1,331.35 Monday.
US gold was unchanged at $1,343 an ounce. "People are worried that September rate hike is not completely ruled out as a possibility. Although the medium-to-long term prospects for a series of rate hikes is not really high, there should be some short-term pressure on gold," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
"Investor's momentum has been lagging for some time. The exchange traded funds have not risen significantly and that should be a short-term bearish signal for gold," To said, adding that gold might soon test the level of $1,280-$1,300. Spot gold may revisit its August 22 low of $1,331.35 per ounce, as suggested by its wave pattern and a triangle, according to Reuters technical analyst Wang Tao.
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