SINGAPORE: Gold prices edged higher in Asian trade on Wednesday to hover around a four-month high, helped by a weaker dollar, ahead of minutes from the US Federal Reserve’s last policy meeting that are expected to shed more light on policymakers’ views on inflation.
Spot gold was up 0.3% at $1,873.01 per ounce by 0657 GMT, after hitting its highest since Jan. 29 at $1,874.80 in the previous session. US gold futures rose 0.2% to $1,872.
“Gold surged aggressively since the start of the week around the narrative that we could see inflation pick up in an environment where the Fed is resistant to tightening,” DailyFX currency strategist Ilya Spivak said.
“Against that backdrop, we’ve seen stronger commodity prices in general and a weaker dollar. Certainly the price of gold has been a notable reflection of that.”
Spot gold may break support at $1,859 and fall into a range of $1,830 to $1,847 per ounce, as it failed to break key resistance at $1,875, according to Reuters technical analyst Wang Tao.
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