Gold prices rose in Asian trading on Wednesday as dip-buyers stepped in following a drop of more than 2% in the previous session, while investors awaited fresh cues on the Federal Reserve’s policy outlook.
Spot gold rose 1.2% at $4,934.16 an ounce by 00:58 ET (05:58 GMT). U.S. Gold Futures advanced 1% to $4,954.91/oz.
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Trading volumes were thin in Asia, with several major regional markets closed for the Lunar New Year holiday, limiting price moves.
The yellow metal dropped more than 2% on Tuesday, when risk appetite improved on signs of progress in U.S.–Iran negotiations.
US-Iran talks progress; Fed meeting minutes loom Iran and the U.S. reached an understanding on the main “guiding principles” of talks, raising hopes of a diplomatic breakthrough and reducing demand for bullion as a haven asset.
The metal’s earlier slide was compounded by a stronger dollar, which makes gold more expensive for holders of other currencies, and by fading expectations of early U.S. interest-rate cuts.
The US Dollar Index edged up 0.1% during Asian hours after gaining 0.3% on Tuesday.
Investors were cautious ahead of the release of minutes from the Federal Reserve’s January policy meeting later in the day, which could offer fresh insight into the timing and scale of potential monetary easing.
Market participants are also awaiting the U.S. personal consumption expenditures (PCE) price index report for December, due on Friday, the Fed’s preferred inflation gauge that could shape interest-rate expectations.
Higher interest rates tend to weigh on non-yielding assets such as gold, while expectations of policy easing typically support prices.
Metal markets upbeat; silver climbs 3% Other precious and industrial metals also traded higher on Wednesday.
Silver prices jumped nearly 3% to $75.77 per ounce, while platinum climbed 2% to $2,060.60/oz.
Benchmark Copper Futures on the London Metal Exchange rose 1% to $12,705.20 a ton, while U.S. Copper Futures edged 0.3% higher to $5.69 a pound.
