Gold prices flat as traders brace for US Fed minutes

GOLD prices were listless during early Asian hours on Wednesday (Jan 4), as investors awaited minutes from the Federal Reserve’s December policy meeting that could offer hints on the US central bank’s tightening path.

Spot gold held its ground at US$1,838.69 per ounce, as of 0023 GMT, after hitting a six-month peak in the previous session. US gold futures dipped 0.1 per cent to US$1,843.60.

Minutes from the Fed’s December meeting are due at 1900 GMT on Wednesday. The US central bank had raised rates by 50 basis points (bps) in December after four straight hikes of 75 bps each.

Bullion is seen as a hedge against inflation, but rising interest rates dull non-yielding asset’s appeal.

China’s factory activity shrank at a sharper pace in December as surging Covid-19 infections disrupted production and weighed on demand after Beijing largely removed anti-virus restrictions, a private sector survey showed on Tuesday.

British manufacturers are starting 2023 on the back foot, after they reported one of their sharpest falls in activity since the 2008-09 recession last month, reflecting a sharp fall in new orders and ongoing job cuts.

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Gold firms, focus shifts to Fed meeting minutes

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Spot silver rose 0.2 per cent to US$24.03, platinum lost 0.4 per cent to US$1,079.71 and palladium gained 1 per cent to US$1,726.59. REUTERS