Gold shines thanks to lower dollar ahead of fed minutes

Gold prices rose for the sixth consecutive session today, Wednesday, thanks to the decline in the dollar and the demand to buy the metal as a safe haven, before the release of the minutes of the monetary policy meeting of the Federal Reserve (the US central bank).

By 0811 GMT, gold in spot transactions rose 0.3% to $2,028.4 per ounce, and its prices increased to approach their highest levels in two weeks earlier in the session.

According to Reuters, US gold futures rose 0.1% to $2,039.1 per ounce.

The dollar index continued its losses for the third day in a row, making bullion priced in the US currency more attractive to buyers from abroad.

“The dollar index fell a little so it is supporting gold prices and we are seeing some safe haven buying as well due to the escalation of tensions in the Middle East,” said Jigar Trivedi, chief analyst at Reliance Securities.

Minutes from the Federal Reserve’s January monetary policy meeting will be released at 1900 GMT and may provide further indications about when to cut interest rates.

According to a poll conducted by Reuters, a small majority of economists participating in the poll expected the US Central Bank to reduce interest rates in June. However, the biggest risk is that the first rate cut will occur later than expected.

Low interest rates reduce the opportunity cost of holding bullion.

Despite “remarkable” progress in curbing inflation in the United States, San Francisco Federal Reserve Bank President Mary Daly said that “there is more work to be done” to ensure price stability. Another Federal Reserve official also warned against postponing interest rate cuts for too long.

As for other precious metals, platinum rose in spot transactions 0.3% to $903.58 per ounce, and palladium rose 0.7% to $981.82 per ounce. Silver rose 0.7% to $23.14 an ounce.