Gold inches lower after U.S. Fed meeting minutes
Gold prices ticked lower on Thursday after minutes from the Federal Reserve’s latest policy meeting indicated that the U.S. central bank would likely keep interest rates higher for longer to check high inflation.
Spot gold was down 0.1% at $1,823.69 per ounce, as of 0039 GMT. U.S. gold futures slipped 0.5% to $1,833.10.
Minutes from the Fed’s Jan. 31-Feb. 1 policy meeting released on Wednesday showed policymakers agreed rates would need to move higher, but that the shift to smaller-sized hikes would let them calibrate more closely with incoming data.
Bullion is seen as a hedge against inflation, but rising interest rates dull the non-yielding asset’s appeal.
Traders of Fed funds futures expect benchmark rates to peak at 5.362% in July and remain above 5% through the year.
New York Federal Reserve Bank President John Williams said on Wednesday the U.S. central bank is “absolutely” committed to bringing inflation back down to its 2% target over the next few years, by bringing demand down in line with constrained supply.
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