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FX.co ★ Gold Climbs Above $2,000 Level Despite Hawkish Fed Minutes

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typeContent_19130:::2023-11-22T09:13:00

Gold Climbs Above $2,000 Level Despite Hawkish Fed Minutes

Gold prices rose above the crucial $2,000 per ounce level on Wednesday despite the modestly hawkish tone of the FOMC minutes and easing Middle East tensions.

Spot gold edged up 0.2 percent to $2,002.58 per ounce, while U.S. gold futures were up 0.1 percent at $2,003.40.

Hamas and Israel have agreed to a Qatar-mediated pause in fighting, helping ease Middle East tensions.

The deal includes the release of 150 Palestinian prisoners held in Israeli jails in exchange for 50 people held captive by Hamas in Gaza since the armed group that rules the enclave stormed southern Israel on October 7.

The U.S. dollar recovered from 2-1/2-month low but remained near recent lows after the FOMC (Federal Open Market Committee) meeting minutes largely reaffirmed the U.S. central bank's more cautious stance on interest rates.

Minutes from the Fed's last rate-setting meeting showed officials expect to keep interest rates at a restrictive level for "sometime" and raise interest rates if progress in controlling inflation faltered.

Treasury yields traded mixed due to deteriorating outlook in the U.S. and the euro area.

In economic releases, U.S. reports on durable goods orders and weekly jobless claims are due later in the day.

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