Yahoo Finance Gold Prices Hold Steady with Fed Minutes on Tap
Investing.com - Gold prices held steady on Wednesday, as traders eyed the minutes of the Federal Reserve's most recent policy meeting due later in the day for indications on future rates hikes.
At its September meeting, the Fed had signaled the possibility of a third rate hike t his year.
Comex gold futures were little changed at $1,292.95 a troy ounce by 08:40 a.m. ET (12:40 GMT), just off Tuesday's almost two-week high of $1,296.70.
The precious metal had strengthened earlier in the week amid heightened geopolitical tensions in North Korea and Spain.
Spanish political tensions eased after Catalan President Carles Puigdemont on Tuesday signed a document proclaiming the region's independence from Spain, but also suspended the move for the coming weeks to allow for talks with the Spanish government, averting an immediate crisis.
The Spanish government was scheduled to convene in Madrid on Wednesday to shore up its response to the Catalan independence movement.
The precious metal's losses were limited on Wednesday by a softer U.S. dollar after President Donald Trump's public feud with Tennessee Senator and fellow Republican Bob Corker sparked concerns over the vote of a major tax-code reform.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 92.92, the lowest since September 29.
Gold is sensitive to moves in both U.S. rates and the dollar. A softer dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures fell 0.20% to $17.17 a troy ounce.
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