Market

Gold Holds Decline After Fed Minutes as Dollar, Yields in Focus By Bloomberg

© Reuters. Gold Holds Decline After Fed Minutes as Dollar, Yields in Focus

(Bloomberg) — Gold held a drop, tracking movements in the dollar and bond yields, with investors weighing the latest insights into the Federal Reserve’s stance on monetary policy and inflation risks.

Minutes from the Fed’s March 16-17 meeting released Wednesday showed officials were united on the need to see more progress on the recovery before scaling back their massive bond-buying program. They also indicated any spikes in inflation — which could be a driver for bullion — are likely to be transitory. Traders will look for further comments from Chair Jerome Powell, who is due to take part in a panel about the global economy on Thursday.

“We expect the Fed to remain accommodative even if inflation rises above their target for some time,” said John Feeney, business development manager at Sydney-based bullion dealer Guardian Gold Australia. “The key for gold will be how much inflation overshoots a desirable level and what effect that has on real yields.”

Bullion has dropped more than 8% this year amid optimism over the global recovery and as rising bond yields damped the appeal of the precious metal, which doesn’t earn interest. Holdings in exchange-traded funds, one of the main pillars behind gold prices hitting a record in 2020, continue to decline, signaling waning investor interest.

was steady at $1,737.02 an ounce at 9:53 a.m. in Singapore, after dropping 0.3% on Wednesday. Silver and palladium fell, while platinum was little changed. The Bloomberg Dollar Spot Index was flat after rising 0.2% on Wednesday.

©2021 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Most Related Links :
todaybiznews Governmental News Finance News

Source link

Back to top button