Gold hovers near 10-month peak amid steady dollar after Fed minutes

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Published: February 21, 2019 10:59:02 AM

Gold prices were firm near a 10-month peak on Thursday, with the dollar holding steady in the wake of minutes from the latest U.S. Federal Reserve meeting that rekindled expectations of a possible rate hike later in the year.

U.S. gold futures were down 0.4 percent at ,342.5 per ounce

Gold prices were firm near a 10-month peak on Thursday, with the dollar holding steady in the wake of minutes from the latest U.S. Federal Reserve meeting that rekindled expectations of a possible rate hike later in the year.

Fundamentals

* Spot gold had gained 0.1 percent to $1,339.99 per ounce by 0054 GMT, having touched $1,346.73 per ounce in the previous session, its highest level since April 20.
* U.S. gold futures were down 0.4 percent at $1,342.5 per ounce.
* Palladium rose 0.3 percent to $1,493, having reached a record level of $1,500 an ounce in the previous session.
* The dollar index against a basket of six major currencies stood little changed at 96.500.
* Minutes from the Fed’s Jan. 29-30 meeting indicated on Wednesday that policymakers may not yet have ended their three-year campaign to raise interest rates, but merely put it on an extended pause.
* U.S. President Donald Trump and North Korean leader Kim Jong Un will hold their second summit in the Vietnamese capital of Hanoi on Feb. 27-28.
* Trump on Wednesday said the United States would impose tariffs on European car imports if it cannot reach a trade deal with the European Union.
* British Prime Minister Theresa May held “constructive” talks in Brussels on Wednesday as she sought concessions on Brexit from a sceptical European Union, her strategy under strain after the defection of three lawmakers.
* Turkey will issue gold-backed bond and sukuk to corporate investors with a settlement date of Feb. 27, the treasury said on Wednesday.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.26 percent to 794.50 tonnes on Wednesday from 792.45 tonnes on Tuesday.
* Canadian miner Barrick Gold outlined on Wednesday details of a deal it reached with the government of Tanzania to settle its disputes with Acacia Mining, including a $300 million payment to resolve tax claims in the country.

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