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Update: Gold Edges Down As Dollar Steadies On Strong U.S. Retail Sales Report Ahead Of Fed's Rate Decision

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(Updates prices.)

Gold was higher midafternoon Wednesday even as the dollar rose after a report showed U.S. retail sales rose more than expected last month ahead of the latest interest rate decision coming from the Federal Reserve.

Gold for July delivery was last seen up US$37.10 to US$4.391.50 per ounce.

The U.S. Census Bureau reported May retail sales rose by 0.9% in May, up from a revised 0.4% in April and topping expectations for a rise of 0.5%, according to Marketwatch.

The bullish data comes ahead of the latest interest-rate decision from the Federal Reserve's policy committee coming later this afternoon, the first under new Fed Chair Kevin Warsh. The Federal Open Market Committee is expected to leave rates unchanged despite the higher inflation that followed high oil prices due to the Iran-U.S. war.

"Traders will be watching closely for any guidance from Chair Kevin Warsh on the inflation outlook, as well as clues on how the Federal Reserve balances still-elevated price pressures against signs of slowing economic momentum," Saxo Bank noted.

The dollar also moved higher, with the ICE dollar index last seen up 0.14 points to 99.68. Treasury yields were mostly steady, with the U.S. two-year note last seen paying 4.071%, up 0.3 basis points, while the 10-year note was down 1.1 points to 4.434%.

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