Gold price seesaws ahead of Fed meeting minutes release
Gold prices seesawed in a narrow range on Wednesday with concerns over high inflation amid mounting sanctions on Russia buoying prices, though its gains are countered by expectations of an aggressive interest rate hike by the US Federal Reserve.
Spot gold lowered by 0.1% to $1,920.87 per ounce by 1:50 p.m. ET. US gold futures were down the same percentage point, trading at $1,925.20 an ounce.
“Inflation fears and the inflation data we’ve been seeing is what’s keeping gold up,” said RJO Futures senior market strategist Bob Haberkorn, in a Reuters report.
Gold should remain strong despite the Fed raising rates, but if the Fed goes a half a basis point, gold could fall towards the $1,900 level, Haberkorn added.
“There’s still a number of things that could trigger another rally in gold. Inflation continuing to rise beyond current expectations, Ukraine/Russia talks collapsing or a recession,” added Craig Erlam, senior market analyst at OANDA.
The precious metal touched its lowest level since March 29 earlier in the day, after Fed Governor Lael Brainard’s comments bolstered expectations for aggressive action by the US central bank to tame inflation.
Investors are awaiting the release of minutes from the March 15-16 Federal Open Market Committee policy meeting, which could provide more clarity on the Fed’s rate hike plans.
