(Bloomberg) -- Gold steadied near the highest level in almost five months as investors weighed the latest comments from Federal Reserve officials for clues on the potential time frame for tapering stimulus.
Philadelphia Fed President Patrick Harker said Wednesday it’s appropriate “to slowly, carefully move back” on bond purchases at a suitable time. Officials have said they will begin scaling back buying when the economy has made “substantial further progress” toward their goals, a condition many Fed-watchers believe will be met later this year.
Separately on Wednesday, the Fed released its Beige Book survey, which showed that the pace of the U.S. recovery picked up somewhat in the past two months, sparking price pressures as businesses contended with worker scarcity and rising costs. Meanwhile, the Fed Board plans to begin gradually selling a portfolio of corporate debt purchased through an emergency lending facility launched last year, as the Covid-19 pandemic was spreading panic through financial markets.
Bullion is stabilizing around $1,900 an ounce amid growing demand for the haven asset, aided by signs of accelerating consumer prices and the risk of an uneven economic recovery. Traders will train their attention on Friday’s U.S. nonfarm payrolls report for May for further clues on the strength of the labor market and whether growth will spur inflation that could prompt governments and central banks to reduce stimulus.
Spot gold was little changed at $1,908.42 an ounce by 8:58 a.m. in Singapore. Prices climbed to $1,916.64 on Tuesday, the highest since Jan. 8. Silver, platinum and palladium were all steady. The Bloomberg Dollar Spot Index was flat.
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