Gold futures were moderately lower Thursday, under pressure after minutes from the Federal Reserve’s January policy meeting released a day earlier showed no significant talk about rate cuts.
Gold for April delivery on Comex
GCJ9, -0.71%
fell $9.80, or 0.7%, to $1,338.10 an ounce, while March silver
SIH9, -1.74%
fell 27.7 cents, or 1.7%, to $15.90 an ounce.
Gold on Wednesday posted its highest close since April 19 but retreated after the bell in electronic trading after the Fed minutes said several officials saw the need for more rate hikes if the economy evolved as expected while others argued rate increases would be necessary only if inflation exceeded forecasts.
“Apparently, the U.S. Federal Reserve is not about to radically change course, and there was no talk at all of rate cuts,” wrote analysts at Commerzbank, in a note. “The minutes have not changed the market’s expectations as regards interest rates: no Fed rate hike is expected this year.”
Investors also continue to keep an eye on U.S.-China trade talks following reports that negotiators have begun to outline a deal that could help resolve the long-running spat.
In other metals trade, March palladium
PAH9, -1.47%
fell $21.90, or 1.5%, to $1,440.20 an ounce, while April platinum
PLJ9, -1.22%
declined $10, or 1.2%, to $824.20 an ounce.
March copper
HGH9, -0.55%
was off 2 cents, or 0.7%, to $2.90 a pound.
Source : MTV
