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


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