16.3 C
New York
Monday, October 25, 2021

Gold Prices Rise to Fresh 9-Month Highs Ahead of Fed Minutes

Gold Prices Rise to Fresh 9-Month Highs Ahead of Fed Minutes© Reuters.

Investing.com – Gold prices moved higher on Tuesday as investors waited for the publication of the minutes from the latest Federal Reserve policy meeting with expectations for them to confirm the central bank’s dovish policy stance.

At 10:37 AM ET (15:37 GMT), for April delivery on the Comex division of the New York Mercantile Exchange gained $18.25, or 1.38%, to $1,340.25 a troy ounce, its best level since May 14.

At 2:00PM ET (19:00 GMT), the Fed will release the of the Jan. 30 meeting when it left interest rates on hold and pledged to be patient with further interest rate hikes, dropping its guidance that “further gradual” rate rises will be needed.

The central bank also said it could alter the pace of its balance sheet reduction “in light of economic and financial developments”.

Investing.com analyst Darrell Delamaide commented that after reversing course 180 degrees.

“Quantitative tightening, which Federal Reserve chair Jerome Powell likes to refer to as ‘balance sheet runoff’, is no longer on autopilot,” he affirmed.

The dovish shift in tone to the Fed’s message implies a longer pause in rate hikes, which in turn decreases the opportunity cost of holding non-interest bearing gold.

In other metals trading, pressed higher as predictions that demand will rise this year as stricter emissions standards pump demand for the metal used in catalytic converters. At 10:40 AM ET (15:40 GMT), the metal gained 3.24% to $1,452.75 an ounce, a new record high.

“In combination with supply-side issues, the market is going to be in a sizeable deficit this year … potential for better-than-expected demand from China will exacerbate that tightness,” ANZ analyst Daniel Hynes said.

— Reuters contributed to this report.

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.

Source: Investing.com

Related Articles

Stay Connected

10,834FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles