Spot gold was up 0.1% at $1,835.40/oz in early trade, while US gold futures also firmed 0.1% to $1,845.10
22 February 2023 - 08:12
by Agency Staff
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Gold prices rose marginally on Wednesday, as investors awaited minutes of the US Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes.
Spot gold was up 0.1% at $1,835.40/oz by 3.34am GMT. US gold futures firmed 0.1% to $1,845.10.
Bullion is seen as a hedge against inflation, but rising interest rates dull the non-yielding asset’s appeal.
“Gold is leaning on the ropes, but it’s not doing too [badly] considering how high US yields have moved — following a slew of strong economic data, which points to a higher terminal Fed rate,” said Matt Simpson, a senior market analyst at City Index.
Data on Tuesday showed US business activity unexpectedly rebounded in February to its highest level in eight months — the latest in a stream of data that have shown signs of a resilient US economy and a tight labour market.
“Traders will be more sensitive to hawkish clues in the FOMC [Federal Open Market Committee] minutes, which could weigh on gold prices,” said City Index’s Simpson.
“There’s a greater chance of gold testing $1,800 before it tests $1,900 over the foreseeable future,” given the prospects of markets repricing a higher terminal Fed rate, Simpson added.
Minutes of the Fed’s latest meeting are due at 7pm GMT on Wednesday. The US central bank raised rates by 25 basis points (bps) at its January 31-February 1 meeting.
The Fed is expected to raise benchmark rates above 5% by May with a peak seen at 5.352% in July.
The dollar index eased 0.1%, making greenback-priced bullion less expensive for buyers holding other currencies. Benchmark US 10-year treasury yields hit their highest since November.
Spot silver was down 0.1% at $21.80/oz and platinum fell 0.3% to $940.03. Both metals were off one-week highs hit on Tuesday.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold inches higher ahead of Fed meeting minutes
Spot gold was up 0.1% at $1,835.40/oz in early trade, while US gold futures also firmed 0.1% to $1,845.10
Gold prices rose marginally on Wednesday, as investors awaited minutes of the US Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes.
Spot gold was up 0.1% at $1,835.40/oz by 3.34am GMT. US gold futures firmed 0.1% to $1,845.10.
Bullion is seen as a hedge against inflation, but rising interest rates dull the non-yielding asset’s appeal.
“Gold is leaning on the ropes, but it’s not doing too [badly] considering how high US yields have moved — following a slew of strong economic data, which points to a higher terminal Fed rate,” said Matt Simpson, a senior market analyst at City Index.
Data on Tuesday showed US business activity unexpectedly rebounded in February to its highest level in eight months — the latest in a stream of data that have shown signs of a resilient US economy and a tight labour market.
“Traders will be more sensitive to hawkish clues in the FOMC [Federal Open Market Committee] minutes, which could weigh on gold prices,” said City Index’s Simpson.
“There’s a greater chance of gold testing $1,800 before it tests $1,900 over the foreseeable future,” given the prospects of markets repricing a higher terminal Fed rate, Simpson added.
Minutes of the Fed’s latest meeting are due at 7pm GMT on Wednesday. The US central bank raised rates by 25 basis points (bps) at its January 31-February 1 meeting.
The Fed is expected to raise benchmark rates above 5% by May with a peak seen at 5.352% in July.
The dollar index eased 0.1%, making greenback-priced bullion less expensive for buyers holding other currencies. Benchmark US 10-year treasury yields hit their highest since November.
Spot silver was down 0.1% at $21.80/oz and platinum fell 0.3% to $940.03. Both metals were off one-week highs hit on Tuesday.
Palladium shed 1.3% to $1,505.95.
Reuters
Gold steady as investors hold back
Gold hemmed in tight range as more rates hikes loom
Gold on track for third weekly drop amid rate hike fears
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