Gold prices climbed on Wednesday, recovering from a one-week low touched in the previous session, as investors looked ahead to the release of minutes from the US Federal Reserve’s January policy meeting for clues on the interest-rate trajectory.
Spot gold rose 1.1% to $4,929.69 per ounce by 0414 GMT, after falling more than 2% on Tuesday.
US gold futures for April delivery increased 0.9% to $4,949.20.
“Broadly speaking, $4,700 to $5,100 will be a broad range for the entire year,” said Jigar Trivedi, senior research analyst at IndusInd Securities.
Following the release of the January minutes from the Federal Open Market Committee (FOMC) later in the day, investors will also focus on the US Personal Consumption Expenditures (PCE) report for December, due Friday, for additional guidance on the rate outlook.
According to CME’s FedWatch Tool, markets are currently pricing in a potential rate cut in June.
Gold, which does not offer a yield, typically performs well in low-interest-rate environments.
Meanwhile, Federal Reserve officials offered mixed signals. Chicago Fed President Austan Goolsbee said on Tuesday that the central bank could approve “several more” rate cuts this year if inflation continues to ease toward its 2% target.
However, Fed Governor Michael Barr cautioned that any further rate reduction may come much later, citing persistent risks to the inflation outlook.
On the geopolitical front, Iran and the US reached an understanding on “guiding principles” for discussions on Tehran’s nuclear programme, though Iranian Foreign Minister Abbas Araqchi said that does not imply a deal is imminent.
Separately, negotiators from Ukraine and Russia wrapped up the first of two days of US-mediated peace talks in Geneva, as US President Donald Trump urged Kyiv to move swiftly toward an agreement to end the four-year conflict.
Among other precious metals, spot silver dropped 2.2% to $75.05 per ounce after tumbling more than 5% in the previous session.
Spot platinum rose 2% to $2,049.42 per ounce, while palladium advanced 1.9% to $1,714.64. – Reuters
