Gold price rises as investors focus on Federal Reserve for hike hints

Gold prices edged higher on Wednesday as rising Omicron variant coronavirus cases helped its safe-haven appeal, but trading was range-bound as investors awaited the minutes of the US Federal Reserve’s latest policy meeting as rate hike bets grow.

Spot gold was up 0.32 per cent at $1,820.41 per ounce by 1132 GMT, with US gold futures rising 0.3 per cent to $1,820.40.

“Supporting gold is the very high number of Covid cases that feeds into the gold safe-haven appeal,” Ricardo Evangelista, senior analyst at ActivTrades, said.

“The factor offering gold some resistance is the strength of the dollar and the likelihood that the dollar could get even stronger because of the Fed’s tightening monetary policy.” Markets are awaiting the Fed’s minutes of its December 14-15, 2021 policy meeting, due at 1900 GMT, which could provide clues on the US central bank’s plan on rate hikes and the tapering of its pandemic-induced stimulus.

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