PT Solid Gold Berjangka | Gold Steadies as Traders Await Next Set of Clues on Fed Outlook

01:23 20 February in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | The article discusses the current trading pattern of gold as investors await clues regarding the future of US interest rates, with the Federal Reserve preparing to release minutes from its recent meeting. Gold for immediate delivery briefly reached $2,023 an ounce after experiencing a more than 1% increase over the preceding two sessions. However, trading volumes might be affected on Monday due to a federal holiday in the US, although activity may be boosted as markets in China reopen following a week-long break, with most local assets and commodities trading flat to lower.

Despite a marginal easing year-to-date, the outlook for US monetary policy remains the primary factor influencing sentiment in the gold market. The Federal Reserve kept rates unchanged in late January, indicating a reluctance to initiate rate cuts, especially given signs of persistent inflation in US data. Typically, higher borrowing costs weigh on gold prices as the metal doesn’t offer interest.

At 13:50 p.m. in London, spot gold was up by 0.2% at $2,017.58 an ounce, though it remains about 2% lower year-to-date. The metal has remained close to its 50-day moving average in recent months. Meanwhile, the Bloomberg Dollar Spot Index declined slightly after recording seven consecutive weekly gains, its strongest performance since September. Silver, platinum, and palladium prices also experienced modest declines.

Source: Bloomberg