Gold prices slip as equities gain after Fed minutes

Gold prices slipped on Thursday as investors turned to riskier assets after the US Federal Reserve's latest meeting minutes indicated continued policy support and cemented hopes of a quick economic turnaround.

FUNDAMENTALS

Spot gold inched down 0.03% to $1,736.76 per ounce at 0149 GMT. US Gold futures fell 0.3% to $1,736.50 per ounce.

Officials at the Federal Reserve are concerned about the ongoing risks of the COVID-19 pandemic and are committed to supporting the economy until its recovery is more stable, according to minutes of the central bank's most recent policy meeting released on Wednesday.

Asian equities were on track to mirror Wall Street's cautious gains, weighing on the metal's safe-haven allure.

The US trade deficit surged to a record high in February helped by massive fiscal stimulus that is expected to put the country's economy on-track for the fastest growth in nearly four decades.

US President Joe Biden made a fiery appeal for U.S companies to foot most of the bill for his $2 trillion-plus infrastructure plan, but signalled an openness to negotiate over exactly how much they would have to pay.

Limiting gold's losses, the US dollar traded near more than two-week troughs versus major peers on Thursday, tracking Treasury yields lower.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.35 tonne to 1,028.69 tonnes on Wednesday from 1,029.04 tonnes on Tuesday.

The National Bank of Hungary (NBH) said it had tripled the country's gold reserves to 94.5 tonnes, its highest level in decades.

Silver fell 0.3% to $25.03 and palladium was down 0.2% to $2,617.71. Platinum rose 0.1% to $1,226.16.