Credited: Reuters
Gold prices regained lost ground on Wednesday to hover close to their all-time highs after minutes from the U.S. Federal Reserve's last meeting showed officials strongly leaned towards an interest rate cut at their September policy meeting. Spot gold was up 0.1% at $2,516.01 per ounce as of 2:42 p.m. ET (1842 GMT) after hitting a record high of $2,531.60 on Tuesday. U.S. gold futures settled 0.1% lower at $2,547.50.
"Gold is closing at the highs after Fed minutes indicated that 'a vast majority' of the committee was prepared to cut rates in September," said Tai Wong, a New York-based independent metals trader."I am cautiously optimistic because all the market-friendly news is already out there. Gold is likely to grind higher but unlikely to accelerate aggressively without an unforeseen event driver."
At the July meeting, "the vast majority" of policymakers "observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting," according to the mninute. Following the Fed minutes, the dollar extended losses to a more than seven-month low, while benchmark U.S. 10-year bond yields fell to a more than two-week low.
Market's focus will now turn to Fed Chair Jerome Powell's keynote speech at the Jackson Hole symposium on Friday.
Elsewhere, spot silver rose 0.6% to $29.61 per ounce.
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