Gold Prices Slipping After Fed Transcript
Gold prices fell on Wednesday as equities strengthened following a recovery in oil prices, but price moves were stopped as investors eyed the minutes of the U.S. Federal Reserve’s March policy meeting.
The June gold price slid 0.5% to settle at $1,223.80 on the New York Mercantile Exchange.
U.S. stocks jumped on Wednesday, helped by a steep rise in oil prices and positive economic data from China, the world’s second-largest economy.
West Texas Intermediate surged five percent to $37.69 after reaching $37.81. Oil rose after after data showed an unexpected draw in U.S. crude stockpiles last week, and after Kuwait said there were positive indications an agreement among oil exporters will be reached on output during a meeting scheduled for April 17 in Qatar.
The Caixin China services purchasing managers index, a private gauge of China’s service sector, rose last month, helping ease concerns about the global economy.
The Fed minutes, due to be published at 2 p.m. New York time, will be assessed for clues on the outlook for U.S. monetary policy and the central bank’s approach to interest rates.
Fed Chairwoman Janet Yellen’s recent cautious stance on global uncertainties has weakened the dollar and lifted U.S. stocks, as investors lowered expectations for U.S. interest-rate hikes.
The dollar continued to fall against the Japanese yen on Wednesday, surrendering an additional 0.6% to ¥109.64.
European stocks headed north on Wednesday. The FTSE 100 index ended 1.2% higher.
Among other precious metals, silver was down 0.5% at $15.15 a troy ounce, platinum was down 0.6% at $945.80 and palladium was down 0.9% at $538.90.
The gold price is five percent below its 52-week peak of $1,287.80 reached on March 11.