Gold rises from one-week low ahead of FOMC minutes
- Spot gold rose 1.1% to $4,929.69 per ounce
Gold prices rose on Wednesday, rebounding from a one-week low hit in the previous session as markets await the release of the Federal Reserve’s January meeting minutes for hints about the rate-cut outlook.
Spot gold rose 1.1% to $4,929.69 per ounce by 0414 GMT, after declining more than 2% on Tuesday.
US gold futures for April delivery gained 0.9% to $4,949.20.
“Broadly speaking, $4,700 to $5,100 will be a broad range for the entire year,” said Jigar Trivedi, a senior research analyst at IndusInd Securities.
After January’s FOMC minutes that are due later today, investors will parse the US Personal Consumption Expenditures report for December, due on Friday, for further indications on where rates may head this year.
US and Iran set for high-stakes nuclear talks in Geneva as threat of war looms
Markets currently expect the Fed to cut interest rates in June, per CME’s FedWatch Tool.
Non-yielding bullion tends to do well in low-interest-rate environments.
The US Federal Reserve could approve “several more” interest rate cuts this year if inflation resumes a decline to the central bank’s 2% target, Chicago Fed President Austan Goolsbee said on Tuesday.
On the other hand, Fed Governor Michael Barr said that another central bank interest rate cut could come somewhere well down the road considering ongoing risks to the US inflation outlook.
In geopolitics, Iran and the US reached an understanding on Tuesday on “guiding principles” for talks around Iran’s nuclear programme, but that does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said.
Negotiators from Ukraine and Russia also concluded the first of two days of US-mediated peace talks in Geneva on Tuesday, with US President Donald Trump pressing Kyiv to act fast to reach a deal to end the four-year conflict.
Spot silver fell 2.2% to $75.05 per ounce after dropping over 5% in the last session.
Spot platinum gained 2% to $2,049.42 per ounce, while palladium added 1.9% to $1,714.64. ‑Reuters