After U.S. Fed meeting minutes, gold prices decline

23 Feb 2023 , 08:18 AM

On Thursday, gold prices slightly declined after readings from the Federal Reserve’s most recent policy meeting suggested that the bank would likely maintain higher interest rates for longer to restrain excessive inflation.

Spot gold was down 0.1% at $1,823.69 per ounce. United States gold futures fell 0.5% to $1,833.10.

The Fed’s officials agreed that rates would need to rise, but that the switch to smaller-sized hikes would help them calibrate more closely with incoming data. The minutes from the Fed’s Jan. 31–Feb. 1 policy meeting were published on Wednesday.

Fed funds futures traders anticipate that benchmark rates will reach a top of 5.362% in July and stay above 5% for the duration of the year.

John Williams, President of the New York Federal Reserve Bank, stated on Wednesday that the U.S. central bank is ‘absolutely’ dedicated to bringing inflation back down to its 2% objective over the next years by reducing demand to match limited supply.

While the dollar index remained stable, buyers holding other currencies had to pay extra for gold priced in dollars.

Benchmark 10-year note rates decreased after Wednesday’s three-month high.

Silver spot prices were stable at $21.51 per ounce, platinum prices dropped by 0.3% to $945.84, while palladium prices decreased by 0.2% to $1,479.59.

For feedback and suggestions, write to us at [e-mail]