Yahoo Finance Gold Prices Little Changed After “Patient” Fed Minutes
Investing.com - Gold prices were little changed on Thursday in Asia following the release of the minutes from last month’s Federal Reserve monetary policy meeting.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were at $1,273.45 per ounce at 1:49 AM ET (05:49 GMT), down 0.06%.
Federal Reserve policymakers said their patient approach to monetary policy action could continue for "some time" amid concerns over the sluggish pace of inflation, according to the minutes released Wednesday.
“In light of global economic and financial developments as well as muted inflation pressures, participants generally agreed that a patient approach to determining future adjustments to the target range for the federal funds rate remained appropriate,” the minutes said. “Participants noted that even if global economic and financial conditions continued to improve, a patient approach would likely remain warranted.”
Despite concerns over the muted pace of inflation of 1.6%, according to the most recent reading, the Fed expects core PCE price inflation to move up in the near term, but nevertheless to run just below its 2% target over medium term.
Prices of the yellow metal stayed little changed as the minutes held no surprises overall.
Traders’ focus is likely on the Sino-U.S. trade war now, analysts said, noting that the U.S. dollar seemed to be driven higher amid the trade conflict and that could put pressure on the gold prices.
Trade tension between the two sides intensified further this week after the U.S. announced new sanction on Chinese telecom giant Huawei.
Reports on Thursday said Washington is urging South Korea to drive Huawei products out of the country, citing security concerns.
The U.S. administration is also considering sanctions on Chinese video surveillance firm Hikvision, Reuters reported citing a person briefed on the matter.
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