Gold prices up as dollar declines ahead of Fed minutes ‎

Gold prices rose on Wednesday, supported by the decline of the dollar and the anticipation that hangs over the markets awaiting the release of the minutes of the Federal Reserve meeting and the private sector jobs report in the United States, which is the data that markets rely on to draw a clearer picture about interest rates.

According to Reuters, gold rose in spot transactions 0.1% to $2,061.78 per ounce by 0741 GMT.

Tim Water, chief market analyst at KCM Trade, said: “Gold is currently in a stable state, and is relying on the gains it achieved last year, but it is likely to achieve new gains if expectations continue that the Federal Reserve will reduce interest rate prices in the new year.”

Traders doubled their bets on cutting interest rates in 2024, thanks to the slowdown in inflation and the tendency towards easing shown by the US Federal Reserve at the monetary policy meeting in December.

Gold rose 13% in 2023, recording its first annual gain since 2020. Low interest rates reduce the opportunity cost of possessing bullion that does not generate returns.

Markets are currently looking forward to the details of the minutes of the US Federal Reserve’s monetary policy meeting, which is scheduled to be released by 1900 GMT. Investors are also awaiting a series of US economic data this week, including the non-farm payrolls report.

As for other precious metals, silver fell in spot transactions 0.4% to $23.55 per ounce, platinum rose 0.1% to $982.52 per ounce, and palladium rose 1.3% to $1095.21.