Gold prices edge higher as Markets await FOMC minutes for Policy clues

Gold prices edge higher as Markets await FOMC minutes for Policy clues

Gold prices edged up in early Wednesday trading, building on the momentum of the previous session, which saw the precious metal gain more than 1.5% and come within a whisker of last week’s all-time high. Demand for bullion has recently increased due to growing anxiety over the Trump administration’s protectionist agenda and its potential impact on global economic growth, boosting the appeal of safe-haven assets such as gold. Lingering geopolitical tensions have further reinforced this dynamic.

However, this upside remains constrained by moderate optimism that the Trump administration’s rhetoric on tariffs is primarily a negotiating strategy and that the conflict between Russia and Ukraine is now closer to a diplomatic resolution. Against this backdrop, today’s release of the latest FOMC minutes could provide more clarity and influence short-term price action for the precious metal. Dovish signals from Federal Reserve policymakers, emphasising concerns over growth and employment, are likely to push Treasury yields lower and weaken the US dollar, supporting non-yielding gold. Conversely, a focus on inflation and hints that interest rates will remain elevated for longer could have the opposite effect, weighing on bullion prices.

Ricardo Evangelista – Senior Analyst, ActivTrades



Source: ActivTrader

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