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Gold price bounces back as investors eye Fed minutes for rate cut clues - YAHOO FINANCE
Gold (GC=F)
Gold prices regained some composure on Wednesday, snapping four consecutive sessions of losses as uncertainty over the trajectory of US monetary policy kept investors on edge ahead of the release of minutes from the Federal Reserve’s October meeting.Gold futures climbed 0.7% to $4,096.20 per ounce, while spot gold gained 2% to $4,095.40 an ounce at the time of writing.
"Gold has somewhat had its momentum thwarted by the stronger USD and doubts about when the next Fed rate cut may arrive," KCM Trade chief market analyst Tim Waterer said.
"However, a bout of risk aversion in the market has kept gold in the frame for investors as a safety play, which has limited the slide."
The Fed cut interest rates by 25 basis points last month, but chair Jay Powell has signalled caution over the prospect of further easing this year, citing limited incoming data. Markets are now assigning nearly a 49% probability to another cut at the central bank’s 9-10 December meeting, according to the CME Group’s FedWatch tool.
Gold, which offers no yield, typically benefits from lower interest rates and periods of economic uncertainty, both of which tend to reduce the relative attractiveness of interest-bearing assets.
