Gold Prices Steady Above $1,800 After Key FOMC Minutes
- Gold pushed higher on Wednesday, logging its sixth straight day of gains
- The FOMC minutes release did little to sway the precious metal’s price
Gold Prices Steady Above $1,800
The price of gold clings to gains on Thursday. This comes after the latest FOMC minutes report that was largely expected by investors across all major asset classes. Indeed, gold bugs appeared in favor of the report as they showed little to no reaction at the time of the release.
On Wednesday, gold closed its sixth straight day in positive territory. This marks a climb of 2.9% for the period of consistent gains. In the early trading hours of Thursday’s session, the precious metal traded near unchanged levels. It stayed at around $1,807, keeping steady above the $1,800 threshold.
The Fed’s readout failed to offer any particular fresh insight over the timing of tapering. However, it did show that some policymakers felt uneasy about the economic recovery. Therefore the latter expected the uncertainty around growth to persist as inflation took a more solid footprint.
Anticipation for Weekly Jobless Claims Data
According to the Fed statement released yesterday, the Federal Open Market Committee is still far from reaching its goals of stable prices and maximum employment. “The Committee’s standard of substantial further progress was generally seen as not having yet been met, though participants expected progress to continue,” the FOMC minutes said.
Uncertainty generally benefits gold as it is considered a safe haven among assets. On that note, the recent climb in the price of gold could be attributed to increased concerns over the rapid spread of the Delta variant of the coronavirus. As well as the growing worries surrounding higher inflation pressures globally.
A slight appreciation in the US dollar kept a lid on the price of gold after the release of the FOMC minutes. Thus the EUR/USD ended Wednesday action at 1.1790, down 0.4% on the day. While the USD/CAD and the USD/CHF advanced yesterday, adding 0.30%, and 0.15%, respectively.
Later today, currency traders will be monitoring the release of the weekly jobless claims to get a clue whether the US economy will continue to accelerate.
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