BENGALURU: Gold prices crept higher on Thursday, but traded in a relatively tight range as investors looked to US economic data for further clarity on the Federal Reserve’s next monetary move.

Spot gold was up 0.3% at $2,034.79 per ounce, as of 1217 GMT, trading in a narrow $10 range in the session so far. US gold futures fell 0.1% to $2,046.30.

If US data this week reinforces the view that the Fed will soon start cutting rates, then gold will gain but in the case of stronger data then the Fed is likely to keep rates higher for longer, said Ricardo Evangelista, senior analyst at ActivTrades.

“We will see the unwinding of the restrictive monetary policies of the major central banks, so 2024 will be a positive year for gold.” Lower interest rates decrease the opportunity cost of holding non-yielding bullion.

Benchmark US 10-year bond yields were near a five-month month low touched on Wednesday while the dollar index slipped.