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Gold Prices Flat on Hawkish Fed Minutes

Published 18/10/2018, 13:02
© Reuters.  Gold was flat on Thursday.
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Investing.com - Gold prices were flat on Thursday as investors paused to digest the latest meeting minutes from the Federal Reserve.

Comex gold futures for December delivery inched up 0.06% to $1,228.10 a troy ounce as of 8:02 AM ET (12:02 GMT).

The hawkish Fed minutes showed that while the central bank had some doubts about the economy, it still planned to gradually increase interest rates in December and beyond.

The central bank raised interest rates for the third time in September and took a more hawkish stance as it took out the word “accommodating” from its policy stance.

Chances of a Fed rate hike at its meeting in December were priced in at 86.4%, according to Investing.com's Fed Rate Monitor Tool.

Rising interest rates are likely remain a concern for gold prices. Interest rate increases dampen the appeal for gold, while boosting the dollar.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, decreased 0.04% to 95.31.

The precious metal usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were lower on the Comex, with silver futures falling 0.70% to $14.560 a troy ounce. Among other precious metals, platinum futures decreased 0.81% to $833.80, while palladium futures inched down 0.13% to $1,066.20 an ounce. Copper futures slumped 1.55% to $2.735 a pound.

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