© Reuters. Gold is up sharply today following the release of the Federal Reserve minutes yesterday
Arabictrader.com – The yellow metal has seen a sharp recovery during trading on Thursday, as the yellow metal cleared the major resistance level of $1,750, supported by the minutes of last night’s Federal Reserve meeting.
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Prices now
In trading terms, spot gold prices fell marginally 0.44% to reach $1,757.42 an ounce, and bullion futures contracts for February delivery also fell 0.59%, to record $1,770.80 per ounce.
At the same time, in addition to gold, futures contracts for February delivery rose 1.18% to $21.78 an ounce, while prices fell 0.25% to $997.99 an ounce. ounce and prices rose 1.54% to $1,914.29 an ounce.
The most important factors influencing gold price movements
The minutes of the Federal Open Market Committee meeting, released last night, from the last meeting of the central bank, provided great support to gold, after indicating that most members of the US Federal Reserve supported the easing pace of interest rate increases.
At the same time, many members have been talking about continued bullish inflationary pressures, but early indications are that there is some balance between supply and demand.
Typically, lower interest rates increase the attractiveness of gold at the expense of yields and the US dollar, as they indicate that the US Federal Reserve is starting to loosen its grip on monetary policy.
Since the minutes were released, it – which measures the performance of the US currency against a basket of 6 other major currencies – fell sharply, falling 0.37%, registering 106.68 points.
The dollar’s decline helps reduce the cost of gold for investors holding non-dollar currencies, which supports increased demand for bullion and pushes prices higher.
At the same time, the minutes also pushed Treasury yields lower, which also allowed gold to expand its profits.
On the other hand, gold also received some support from the downgrade of China’s economic growth expectations and recession expectations, especially in the region and the UK.
In terms of physical transactions, demand for gold in Asia remained sluggish this week, especially in China, as the reimposition of wider epidemic restrictions and rising domestic gold prices in India limited demand.
