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Fed officials note that one or more 50-basis-point hikes in target range may be appropriate at future meetings
spot gold, gold prices, interest rates, forex, interest rates, gold, dubai gold
Gold prices fell on Thursday morning following the release of the minutes of the March Federal Reserve meeting, as gold’s appeal as a safe haven and inflation hedge offset expectations for a 50 basis point rate hike from the Federal Reserve.
Spot gold was trading at $1,921.29 an ounce at 9.30am UAE time, down 0.14%.
In the UAE, gold prices were down 1 dirham at the open on Thursday.
24K was trading at Dh232.75 a gram, compared with Dh233.75 at Wednesday’s close, data from Dubai Gold and Jewellery Group showed.
Among other variants of the precious metal, 22K opened at Dh218.5 per gram, 21K opened at Dh208.5 and 18K opened at Dh178.75.
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Gold continued to trade sideways overnight, with the dollar and U.S. yields little changed, said Jeffrey Halley, senior market analyst at Oanda.
“That means gold is trading sideways again. Further dollar strength today pushed gold prices down in Asia. Risks to gold remain skewed to the downside, especially if U.S. yields and the dollar continue to climb,” he said.
“You’re going to see gold trading slightly lower between now and today’s close, but there’s really no big surprise in the (Fed) minutes,” said Bob Haberkorn, senior market strategist at RJO Futures, adding that gold has limited downside .
“The market is expecting a half-point hike,” he told Reuters.
According to the minutes of the March 15-16 policy meeting, Fed officials noted that a 50 basis point or more increase in the target range may be appropriate at future meetings, next in May, especially as inflation pressures remain. higher or intensified.
-waheedabbas@khaleejtimes.com
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