Gold prices steadied on Wednesday, trading in a tight range as support from a weaker dollar countered concerns surrounding the US Federal Reserve’s next interest rate decision. Spot gold was little changed at $1,964.09 per ounce by 0433 GMT. US gold futures eased 0.1% to $1,980.10.

The dollar index weakened slightly, making gold less expensive for buyers holding other currencies.

The uptrend in gold is intact and the big question now is when will the Fed end its rate-hike campaign, said Ilya Spivak, head of global macro at Tastylive, adding that gold could see higher moves once there was more clarity on that.

“If the Fed ends up looking more hawkish because inflation is more durable, now that headwinds like the debt ceiling are out of the way… the risk is significant,” he said.

Non-interest-bearing bullion tends to become less attractive in a high interest rate environment.

Supply gain pressures continued to abate in May, the New York Fed said in a report on Tuesday, further reducing what had been one of the key forces driving up inflation pressures around the world.

Ahead of the Fed meeting next week, the US consumer price report for May, due on June 13, will provide investors more clarity about the health of the world’s largest economy following recent mixed economic data and dovish remarks from Fed officials.

Fed fund futures indicate traders have priced in an 80.6% chance that the Fed will hold interest rates in the 5%-5.25% range, according to CMEGroup’s Fedwatch tool.

Gold in wait-and-see mode as Fed rate path stays cloudy

However, they see 51% odds of another 25-basis point hike in July.

Meanwhile, exports from top bullion consumer China shrank much faster than expected in May and imports fell, albeit at a slower pace, as manufacturers struggled to find demand abroad and domestic consumption remained sluggish.

Spot Platinum rose 0.6% to $1,037.56 per ounce, palladium advanced 0.4% to $1,419.38. Silver was flat at $23.575.