Gold rose as investors focus on Fed for bullish hints
Jan. 5 (Reuters) – Gold prices edged up on Wednesday as rising cases of the Omicron variant coronavirus contributed to its safe-haven appeal, but trading was limited as investors awaited trial- minutes from the latest US Federal Reserve policy meeting as rate hike bets rose.
Spot gold rose 0.32% to $ 1,820.41 an ounce at 11:32 GMT as US gold futures rose 0.3% to $ 1,820.40.
“Supporting gold is the very high number of COVID cases fueling the call for gold havens,” said Ricardo Evangelista, senior analyst at ActivTrades.
“The factor offering gold some resistance is the strength of the dollar and the likelihood that the dollar could get even stronger as a result of the Fed’s tightening of monetary policy.”
Markets are awaiting the Fed’s report on its December 14-15, 2021 policy meeting, scheduled for 19:00 GMT, which could provide clues to the U.S. central bank’s plan for rate hikes and lower rates. stimulus measures induced by the pandemic.
Higher interest rates increase the opportunity cost of holding gold.
The dollar held below two-week highs, while benchmark 10-year Treasury yields were slightly lower after hitting their highest level for more than a month in the previous session.
ADP’s labor market data will be of greater interest to the price of gold, Commerzbank said in a research note. “If the US dollar and / or bond yields meet the numbers, the price of gold should start to move as well.”
Non-farm payrolls in the United States on Friday are also on the radar.
From a technical standpoint, “we would have a new positive signal with the $ 1,830 breach, while a drop below $ 1,800 could bring the price back into the side channel between $ 1,760 and $ 1,800. “, Carlo Alberto De Casa, Market Analyst at Kinesis. , written in a note.
Elsewhere, spot silver rose 0.2% to $ 23.08 an ounce, platinum rose 0.9% to $ 980.01, and palladium rose 2.6% to 1,917 , $ 89.
Report by Seher Dareen in Bangalore; Editing by Pravin Char and Alexander Smith
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