Gold keeps above $ 1200 in anticipation of Fed minutes

17.02.2016

During the US trading on Wednesday, gold futures have not changed and stayed above $ 1200 as investors await the publication of the Fed's January meeting minutes to find fresh indication whether the US central bank is to raise interest rates this year.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery lost 80 cents, or 0.07%, to trade at $ 1207 40.

Investors have focused on the release of the January Fed meeting minutes to determine the monetary policy on Wednesday at 19:00 GMT, or 2:00 pm Eastern Time.

Following the meeting, which ended January 27, the Federal Reserve left interest rates unchanged and stated that is "closely monitoring" the global economy and finances.

Last week, the chairman of the Board of Governors of the Federal Reserve, Janet Yellen, said that financial conditions in the country have become less favorable for economic growth, since the growth of overseas economies pose a risk to the US economic outlook, but also noted that the moderate growth in the US economy may justify the "gradual changes "in the Fed's monetary policy.

With regard to statistics, the US Commerce Department announced that the producer price index rose 0.1% in January, while the basic producer price index (excluding food and energy) rose 0.2%.

On Tuesday, gold fell $ 31.20, or 2.52%, as the haven demand fell against the background of recovery in global equity markets.

Last Thursday, gold soared to a one-year high of $ 1263.90 on increased demand for safe assets. In recent weeks, the demand for gold is well supported on the evidence of the risks that the global economy and financial stability may interfere with the Fed plans to raise interest rates in the planned pace this year.

Also on the Comex, silver futures delivery rose 1.1 cents or 0.11% in March, and is traded at $ 15.35 per troy ounce in the morning session in New York.

Copper prices rose amid renewed expectations of further stimulus from central banks in Europe and Asia.

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