Gold prices are stable ahead of Fed minutes and key data

Gold prices were stable on Wednesday amid a slight pullback in US Treasury yields, with investors avoiding making big bets ahead of the release of key data and minutes from the Federal Reserve’s November meeting.

As of 0928 GMT, spot gold was up 0.1% to $ 1,792.24 an ounce, while US gold futures were up 0.5% to $ 1,791.80.

The bullion fell below the key mark of US $ 1,800 earlier this week as Fed Chairman Jerome Powell’s nomination for a new term affirmed bets of an early tightening of monetary policy and propelled the dollar.

The rise in the greenback makes raw materials more expensive for holders of other currencies.

Real interest rates remain negative and COVID-19 uncertainty supports gold, but some relief that a new Powell period will ensure continuity has boosted financial markets and put pressure on bullion, according to StoneX analyst Rhona O ‘Connell.

Overall, sentiment among gold investors remains cautious ahead of the minutes of the last Fed meeting, O’Connell said.

Attention will also turn to a number of data from the United States, including economic growth figures and the fundamental price index for personal consumption expenditures, to be released later in the day.

Platinum was up 0.8% at $ 976.73 per ounce, while palladium was up 0.9% at $ 1,884.25 and silver was down 0.1% at $ 23.63.