NEW YORK: Gold prices were stuck in a narrow range on Tuesday, as lower Treasury yields amid lingering recession woes offset a firmer dollar, while investors turned their attention to the US Federal Reserve’s two-day meeting.

Spot gold eased 0.1% to $1,716.91 per ounce by 1:50 p.m. EDT (1750 GMT). US gold futures settled down 0.1% at $1,717.70.

US Treasury yields fell sharply, as a looming gas supply crisis in Europe kept the markets on edge about global recession risks.

“The relief we’ve seen in yields is a good sign for gold... persistent fear in the equities market, geopolitical issues and if the energy squeeze intensifies, there will be strong demand for safe-haven,” Edward Moya, senior analyst with OANDA, said. But “if investors feel the Fed is still ready to deliver another 75 bps hike in September, that’s going to be trouble for gold.”

The International Monetary Fund cut global growth forecasts again, warning that downside risks from high inflation and the Ukraine war were materializing. But capping gold’s gains, the US dollar rose 0.7%, making bullion less appealing for overseas buyers.

Since gold in a non-interest yielding asset, rising interest rates make it less appealing. However, gold is widely regarded as an inflation hedge and safe-store of value amid economic uncertainties.