Gold prices steady following inflation concerns - GulfToday

Gold prices steady following inflation concerns

Gold bars

Picture used for illustrative purpose. File

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.

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