By Gina Lee
Investing.com – Gold was up on Thursday morning in Asia, while U.S. Treasury yields gained. The Federal Reserve’s minutes from its last meeting also showed the central bank was unlikely to be more aggressive on interest rate hikes.
Gold futures edged up 0.14% to $1,848.96 by 12:15 AM ET (4:15 AM GMT). Gold cut some dollar strength-driven losses after Wednesday’s Fed minutes suggested the central bank would raise interest rates by 50 basis points in June and July 2022 to combat inflation, which has become a key threat to the economy’s performance.
It was positive for gold that the Fed will put in two more half-percentage-point hikes and then wait to see its economic impact, according to Tiger Brokers chief strategy officer Michael McCarthy.
However, gold’s response has been quite disappointing, with the minutes also boosting risk sentiment, he added.
U.S. shares ended higher on Wednesday, with Fed policymakers unanimously feeling the U.S. economy was very strong as they navigated curbing high inflation without triggering a recession.
It looks like the beginning of an uptrend in gold, and prices might see a bottom at current levels around $1,850 per ounce, and potentially some moves towards the $1,90 mark, said McCarthy.
Meanwhile, the Bank of Korea hiked its interest rate to 1.75% as it handed down its policy decision earlier in the day.
SPDR Gold Trust (P:GLD) said its holdings rose 0.2% to 1,069.81 tons on Wednesday from 1,068.07 tons during the previous day.
In other precious metals, silver fell 0.5%, platinum eased 0.1% at $943.15 and palladium was little changed at $2,006.61.
Source : Investing.com