You are here: Home » Markets » Commodities » Precious Metals
Business Standard

Gold price falls on swift economic recovery hopes; US Fed minutes eyed

Spot gold was down 0.4% to $1,737.09 per ounce by 0946 GMT. US gold futures slipped 0.3% to $1,737.70 per ounce

Topics
Gold Prices | Precious metals | US Federal Reserve

Reuters 

Gold price falls on swift economic recovery hopes; US Fed minutes eyed
Gold bricks

fell on Wednesday as robust economic data from the United States lifted expectations of a rapid recovery and dampened bullion's appeal, while investors were waiting for minutes from the Federal Reserve's last policy meeting.

Spot gold was down 0.4% to $1,737.09 per ounce by 0946 GMT. US gold futures slipped 0.3% to $1,737.70 per ounce.

Strong U.S. economic data is raising fears that central bank tapering can arrive sooner than expected, said ActivTrades chief analyst Carlo Alberto De Casa.

Expectations are rising that accelerating U.S. economic growth and inflation could force the Fed to abandon its pledge to keep interest rates near zero until 2024.

Non-yielding gold is highly sensitive to rising rates, as they raise the opportunity cost of holding the bullion and support dollar and bond yields.

Market participants are waiting for the release of minutes from the U.S. Federal Reserve's March 16-17 policy meeting at 1800 GMT.

Data on Tuesday showed U.S. job openings rose to a two-year high in February while hiring picked up on strengthening domestic demand amid increased COVID-19 vaccinations and additional pandemic aid from the government.

Euro zone business activity also returned to growth last month, underpinned by a record expansion in the manufacturing sector.

The International Monetary Fund, meanwhile, raised its outlook for global economic growth.

However, safe-haven gold can still remain supported as "things are not so good in Europe. Vaccinations are well behind and are progressing very slowly and we are still in midst of a third (coronavirus) wave," said Commerzbank analyst Carsten Fritsch.

Central banks across the globe, in particular the European Central Bank and the Federal Reserve, want to see higher growth and inflation numbers before they think about changing monetary policy, he added.

Among other precious metals, silver fell 0.9% to $24.95 per ounce and palladium fell 1.5% to $2,643.49, while platinum was steady at $1,233.04.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, April 07 2021. 15:52 IST
RECOMMENDED FOR YOU
.