Fed minutes and the dollar maintain control over gold prices

Shafaq News / The prices of gold fluctuated in global markets on Wednesday as investors awaited the release of the Federal Reserve's recent monetary policy meeting minutes later today, seeking further clarity on its upcoming moves. Meanwhile, the rise of the dollar kept bullion gains in check.

Gold futures are now down by 0.1% to $2071 an ounce, while spot gold is up around 0.2% to $2063 an ounce.

On the other hand, the dollar index remained relatively stable at 101.87 points.

The dollar index hovered near its highest level in over a week, driven by a surge in Treasury yields. The stronger dollar makes gold more expensive for holders of other currencies.

Traders heightened their bets on interest rate cuts in 2024, encouraged by slowing inflation and cautious sentiment from the Federal Reserve's meeting last December.

Futures markets indicate a 70% chance of a 25-basis-point rate cut at the Federal Reserve meeting on March 20.

Additionally, the rate cut reduces the opportunity cost of holding non-yielding bullion.

Investors are anticipating a series of US economic data this week, including the non-farm payrolls report on Friday, which could influence whether the Federal Reserve will begin interest rate cuts in March as markets expect.

Silver in spot trades rose by 0.1% to $23.66 an ounce, while platinum remained largely unchanged at $981.27. Palladium increased by 0.3% to $1084.40.