Gold Gains On Dovish Fed Minutes

Gold prices rose on Thursday as the dollar and treasury yields retreated on dovish signals from the Federal Reserve.

Spot gold rose 0.4 percent to $1,745.02 an ounce while U.S. gold futures were up 0.3 percent at $1,746.05.

The U.S. dollar traded near its lowest in more than two weeks versus major peers and yields on longer-term U.S. Treasuries dropped after the Federal Reserve in its latest policy meeting minutes gave no indication a tightening of monetary policy was imminent.

“Participants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized and that, consistent with the Committee’s outcome-based guidance, asset purchases would continue at least at the current pace until then,” the Fed’s March 16-17 minutes revealed.

Meanwhile, the Biden administration released more details about the tax plan, which raises the federal corporate income tax rate to 28 percent from 21 percent.

Traders await a speech from the Fed Chair Jerome Powell at a virtual IMF seminar, where he outlines his views on global recovery and the monetary policy outlook.

The material has been provided by InstaForex Company – www.instaforex.com