fundamental News - XAUUSD
Gold prices were little changed on Thursday, as a surge in U.S. Treasury
yields following hawkish meeting minutes released by the Federal
Reserve offset the precious metal's safe-haven demand amid rising cases
of the Omicron coronavirus variant.
Spot gold XAU/USD was little changed at $1,810.59 per ounce by 0142 GMT. U.S. gold futures GCv1 fell 0.8% to $1,810.00.
Fed officials said the "very tight" U.S. labour market might
warrant raising rates sooner than expected, as well as reducing the
bank's overall asset holdings to tame high inflation, minutes of their
Dec. 14-15 policy meeting showed.
Some investors view gold as a hedge against higher inflation, but
the metal is highly sensitive to rising U.S. interest rates which
increase the opportunity cost of holding non-yielding bullion.
On the federal funds rate on Wednesday have priced in a roughly 80%
chance of a quarter-percentage-point rate hike by the Fed at its March
meeting. Making gold less appealing for other currency holders, the
dollar cut losses after the Fed minutes.
expectation today: neutral
