Gold prices held steady on Wednesday, helped by a slightly weaker dollar as investors looked forward to minutes of the last US Federal Reserve policy meeting due later in the day for more clarity on its interest rate path.
Gold hits over one-week high as dollar eases
Fundamentals
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Spot gold was flat at $2,024.00 per ounce, as of 0100 GMT. US gold futures edged 0.2% down to $2,035.00 per ounce.
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The dollar index was down 0.1%, making greenback-priced bullion more affordable to overseas buyers. * The minutes of the US central bank’s January policy meeting will be released at 1900 GMT.
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According to a narrow majority of economists polled by Reuters, the Fed will likely lower the federal funds rate in June. The greater risk is that the first rate cut would occur later than forecast rather than earlier.
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Despite “remarkable” progress on US inflation, Federal Reserve Bank of San Francisco President Mary Daly said “there is more work to do” to ensure stable prices.
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Meanwhile, another Fed official cautioned against delaying rate cuts for too long.
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Hotter-than-expected US consumer prices and producer prices data last week dashed hopes around a rate cut in March.
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Markets are currently pricing in a 77% chance of a cut in June, according to the CME Fed Watch Tool.
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Lower interest rates boost the appeal of holding non-yielding bullion.
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Spot platinum was up 0.1% at $901.50 per ounce, palladium rose 0.2% at $977.05, while silver was down 0.1% at $22.97 per ounce.
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