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Gold Holds Near 2-Week Low on Firm Dollar Ahead of Fed Minutes

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Gold steadied on Wednesday after falling to a more than two-week low in the previous session, as a stronger dollar dented demand for bullion ahead of the release of minutes from the US Federal Reserve’s latest meeting.

FUNDAMENTALS

Spot gold edged down 0.1 per cent to $1,273.96 per ounce at 0114 GMT. In the previous session the metal fell to $1,268.97, its lowest since May 3. US gold futures were unchanged at $1,273.60 an ounce.

The dollar hovered near a four-week high on Wednesday, supported by higher US yields, which rose overnight after the United States eased trade restrictions on Chinese telecommunications equipment maker Huawei Technologies Co Ltd . A stronger dollar makes gold more expensive for holders of other currencies.

Chinese Ambassador to the United States Cui Tiankai said on Tuesday that Beijing was ready to resume trade talks with Washington, but blamed the US side for frequently “changing its mind” on tentative deals to end US-China trade disputes.

Asian stocks on the other hand were on shaky ground, as earlier relief over Washington’s temporary relaxation of curbs against China’s Huawei failed to offset deeper worries about trade frictions between the two largest economies.

Chinese Ambassador to the United States Cui Tiankai said on Tuesday that Beijing was ready to resume trade talks with Washington, but blamed the US side for frequently “changing its mind” on tentative deals to end US-China trade disputes.

Asian stocks on the other hand were on shaky ground, as earlier relief over Washington’s temporary relaxation of curbs against China’s Huawei failed to offset deeper worries about trade frictions between the two largest economies.

Meanwhile, the Fed minutes are expected to provide insights into the May 1 central bank meeting in which policymakers decided to keep interest rates steady and signalled little appetite to adjust them any time soon.

Courtesy: Economic Times

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