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Gold steady ahead of Fed minutes

Published: 00:59 09 Apr 2015 AEST

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Gold remained steady today ahead of the release of the minutes from last month’s Federal Reserve meeting.

Investors are hoping for clues as to how strong a US dollar its economy can withstand. 

Fed Chairwoman Janet Yellen last month outlined the negatives to a stronger dollar on inflation and US exports and this point could be remade this evening.

UK commodity broker Marex Spectron said: “No doubt these [the Fed minutes] will, as always, be carefully scrutinized for any hints of when the much touted rate rises might start.”

“However, on the basis that the Fed themselves probably don’t know the answer, the continued speculation will just serve to make the markets even more nervous than usual.”

Should this happen, the US dollar could depreciate leading to gains for gold. 

Gold traded at around US$1,206 per troy ounce today, down $3, after weakening slightly yesterday as a good day for the US currency and rising equity markets make gold less appealing in the short term.

Silver nudged down 0.5% to US$16.76 while platinum fell US$4 to US$1,168.

Major Movers

Fresnillo down 2% to 690p

Randgold down 95p to 4,731p

Anglo American up 4p to 1,029p.

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