With investors anticipating the release of the minutes from the most recent U.S. Federal Reserve policy meeting later in the day for further insight into the Fed’s interest rate trajectory, gold prices remained stable on Wednesday, supported by a somewhat weaker dollar.
Spot gold was unchanged at $2,024.00 per ounce. American gold futures decreased by 0.2% to $2,035.00 an ounce.
The dollar index decreased by 0.1%, which allowed foreign buyers to purchase bullion priced in US dollars at a lower cost.
AT 1900 GMT, the minutes of the January policy meeting of the US central bank will be made public.
A slim majority of Reuters-surveyed economists predict that the Federal Reserve will cut the federal funds rate in June. The bigger danger is that the initial rate drop might come into effect later than anticipated.
Federal Reserve Bank of San Francisco President Mary Daly stated that ‘there is more work to be done’ to preserve stable pricing, despite ‘remarkable’ progress on U.S. inflation.
In the meantime, a different Fed official issued a warning about postponing rate decreases for too long.
Hopes for a rate decrease in March were shattered by hotter-than-expected U.S. consumer and producer pricing data released last week.
The CME Fed Watch Tool indicates that markets are presently pricing in a 77% possibility of a cut in June.
Having non-yielding bullion becomes more appealing when interest rates are lower.
Spot silver was down 0.1% at $22.97 per ounce, spot platinum was up 0.1% at $901.50 per ounce, and spot palladium was up 0.2% at $977.05.
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