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Gold stays near 10M-hike; markets closely await Fed minutes

Gold stays near 10M-hike; markets closely await Fed minutes

Mubasher: Gold prices remained at 10-month highs on Wednesday, encouraged by concerns over global economic slowdown and a weaker dollar.

Markets are also closely awaiting the release of the US Federal Reserve’s policy meeting minutes later in the session.

At 9:25 am GMT, spot gold added 0.21% to $1,343.69 per ounce, while US gold futures grew 0.04% to $1,345.40 per ounce.

Meanwhile, palladium recorded a 0.3% hike to $1,484.00 per ounce on supply concerns.

Progress signs in Washington-Beijing discussions had slashed appetite for the greenback, which in return has been boosting the yellow metal.

By 9:25 am GMT, the US dollar index, a gauge for the greenback against six major peers, inched up 0.01% to 96.5270.

On Tuesday, US President Donald Trump said trade talks with China were going well and suggested he was open to postpone the deadline to complete negotiations, adding that 1 March was not a “magical” date, Reuters reported.

Along with trade deal hopes, forecasts that the US Federal Reserve will pause its round of interest rate hikes have also lent support to spot gold prices.

The Fed will release minutes of its January policy meeting later in the day that will provide more guidance on the likelihood or not for rate hikes this year.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, on Tuesday announced a 0.07% decline in its holdings to 792.45 tonnes from 793.03 tonnes on Friday.