NEW YORK: Gold rose on Wednesday after concerns over further US stimulus to support the virus-hit economy eased and the focus shifted to upcoming minutes from the US Federal Reserve’s last meeting for clues on the outlook of monetary policy.
Spot gold rose 0.5% to $1,887.05 per ounce by 1:45 pm EDT (1745 GMT). US gold futures settled down 0.9% at $1,890.80.
US President Donald Trump on Tuesday announced a halt in additional stimulus negotiations until after the Nov. 3 presidential election, prompting gold prices to drop nearly 2%. He later suggested new payroll assistance to US passenger airlines. “President Trump’s retracement from ‘no stimulus negotiation’ to ‘unilateral relief measures’ has helped support gold prices despite the US dollar only weakening slightly,” said Jeff Klearman, portfolio manager at GraniteShares.
“Coronavirus-related demand destruction concerns still abound, meaning sooner or later, a fiscal stimulus package will likely be passed and the Fed will continue its unprecedented accommodative monetary policy,” Klearman said.
Investors now await minutes from Fed’s Sept. 15-16 policy meeting at 1800 GMT. Fed Chair Jerome Powell on Tuesday called for more help for businesses and households to keep a nascent economic recovery from faltering.
“There is an anticipation about the level of inflation as a result of stimulus ... and that could be hedged by gold,” said Jeffrey Sica, president and chief investment officer of Sica Wealth Management.
Silver climbed 3% to $23.78 per ounce, platinum gained 1.8% to $863.18, and palladium rose 0.8% to $2,358.82.
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