Gold steady at one-week high ahead of US Fed minutes
Investors await the August US Fed minutes due later in the day, as the markets eye trade talks at its annual economic symposium this week
London — Gold prices steadied at their highest in a week on Wednesday, as the dollar eased ahead of minutes from the US Federal Reserve’s August policy meeting and trade talks between Chinese and US officials. The Fed minutes are expected to cement market assumptions for two more interest rate increases this year, which does not bode well for non-interest yielding bullion, although analysts said this was already largely factored into the gold price. Rising interest rates lift the opportunity cost of holding non-yielding metal while boosting the dollar, in which it is priced. "The Fed was sounding relatively hawkish when it met last month and the outlook is likely to be for another rate rise later this year and that is largely within the gold price," said Mitsubishi analyst John Butler. He said that in the meantime, the weaker dollar would help gold test the key psychological level of $1,200, helping lift it from currently oversold levels. Gold touched a more than one-and-a-half-year...
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