Gold Steadies After Fed Minutes as Dollar, Bond Yields in Focus

  • In Business
  • 2021-04-08 05:20:41Z
  • By Bloomberg

(Bloomberg) -- Gold steadied, tracking movements in the dollar and bond yields, with investors weighing the latest insights into the Federal Reserve's stance on monetary policy and inflation risks.

Minutes from the Fed's March 16-17 meeting released Wednesday showed officials were united on the need to see more progress on the recovery before scaling back their massive bond-buying program. They also indicated any spikes in inflation -- which could be a driver for bullion -- are likely to be transitory. Traders will look for further comments from Chair Jerome Powell, who is due to take part in a panel about the global economy on Thursday.

"We expect the Fed to remain accommodative even if inflation rises above their target for some time," said John Feeney, business development manager at Sydney-based bullion dealer Guardian Gold Australia. "The key for gold will be how much inflation overshoots a desirable level and what effect that has on real yields."

Bullion has dropped more than 8% this year amid optimism over the global recovery and as rising bond yields damped the appeal of the precious metal, which doesn't earn interest. Holdings in exchange-traded funds, one of the main pillars behind gold prices hitting a record in 2020, continue to decline, signaling waning investor interest.

Spot gold added 0.1% to $1,739.65 an ounce at 12:41 p.m. in Singapore, after dropping 0.3% on Wednesday. Silver and palladium fell, while platinum advanced. The Bloomberg Dollar Spot Index slipped 0.1% after rising 0.2% on Wednesday.

For more articles like this, please visit us at

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.


More Related News

Asia Stocks Set for Steady Open on Growth Optimism: Markets Wrap
Asia Stocks Set for Steady Open on Growth Optimism: Markets Wrap

(Bloomberg) -- Asian stocks look poised for a steady start Monday after a third straight weekly Wall Street advance, with Federal Reserve Chair Jerome Powell...

Oil Steady Near $59 as Fed
Oil Steady Near $59 as Fed's Powell Points to Economic Growth

(Bloomberg) -- Oil was steady near $59 a barrel in Asian trading after Federal Reserve Chair Jerome Powell said the U.S. economy was poised for stronger...

Fed's Powell sees US boom ahead, with COVID still a risk

Chair Jerome Powell, speaking to CBS' "60 Minutes," also said that he doesn't expect to raise the Fed's benchmark interest rate, currently pegged at nearly...

Aussie Dollar Bulls Unbowed Despite Disappointing March
Aussie Dollar Bulls Unbowed Despite Disappointing March

(Bloomberg) -- Hedge funds look steadfastly bullish on the Australian dollar despite its decline against the greenback in March. The nation's employment data...

Harley-Davidson Nominates Ford CEO Farley to Join Its Board
Harley-Davidson Nominates Ford CEO Farley to Join Its Board

(Bloomberg) -- Harley-Davidson Inc. nominated Ford Motor Co. Chief Executive Officer Jim Farley to join its board, the latest move by CEO Jochen Zeitz as he ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business