Gold prices steady following inflation concerns

Gulf Today Report 

Gold prices steadied as market participants consider the US Federal Reserve’s decision to keep interests rates low for a while.

Spot gold was flat at $1,737.89 per ounce by 04:07 GMT while US gold futures fell 0.1% to $1,739.20 per ounce.

According to minutes of the US central bank’s meeting, the US Fed are committed to supporting the economy until its recovery is more secure.

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Michael McCarthy, chief market strategist at CMC Markets said, "investors are expecting the Fed will have to hike interest rates as early as January 2022 as it becomes a huge task once inflation starts going out of control."

The increase in interest rates lessens the appeal of non-yielding gold, increasing the opportunity cost of holding bullion.

In the near term, gold has support at $1,727 and $1,720 levels, followed by $1,705, OANDA senior market analyst Jeffrey Halley said in a note.