Gold range-bound as dollar takes heart from expectation of tighter US policy
Metal holds steady as the greenback firms after the Fed’s minutes reinforce the expectation that policymakers will stick with hawkish plan
Bengaluru — Gold prices held steady in a narrow range on Thursday as Asian shares eased, while the dollar firmed after minutes of the Federal Reserve’s September meeting reinforced expectations of a tighter US monetary policy. Fed policymakers are largely united on the need to raise borrowing costs further, minutes from their most recent policy meeting showed, boosting the expectation the committee will stick to its hawkish stance on raising interest rates. Spot gold was up 0.1% at $1,223.78/oz at 4.03am GMT, hovering close to its highest since July 26 at 1,233.26/oz hit on Monday. US gold futures were flat at $1,226.90/oz. “Gold is closely tracking both the US dollar and equities, more so the dollar,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. “Gold has traded largely in a $2 range today, with the dollar being stronger. Prices should hold here until they find some new trigger, when they can try again for an upside,” he said. The dollar index rose to...
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