USA Dollar

Gold edges higher on safe-haven demand, weaker dollar – 2024-02-21

Feb 22 (Reuters) – Gold prices edged up on Thursday
supported by safe-haven demand amid rising geopolitical tensions
in the Middle East and a softer dollar, while minutes of the
latest U.S. Federal Reserve meeting dampened hopes for an early
interest rate cut.


* Spot gold was up 0.1% at $2,026.9 per ounce, as of
0100 GMT. U.S. gold futures edged 0.1% up at $2,035.8
per ounce.

* Israel intensified its bombardment of Rafah in Gaza’s
south, as the ruined Palestinian enclave’s health ministry
announced 29,313 deaths in the war so far.

* The dollar index was down 0.1%, making
greenback-priced bullion more affordable to overseas buyers.

* January inflation data, with consumer prices rising faster
than anticipated, complicate upcoming Fed rate decisions,
Richmond Fed president Thomas Barkin said.

* The bulk of policymakers at the Fed’s last meeting were
concerned about the risks of cutting interest rates too soon,
according to minutes of the Jan. 30-31 session.

* Markets are currently pricing in a 70% chance of a cut in
June, according to the CME Fed Watch Tool. Lower interest rates
boost the appeal of holding non-yielding bullion.

* Copper and gold are expected to see the largest immediate
price boost in the commodities sector from potential U.S.
Federal Reserve interest rate cuts, analysts at Goldman Sachs

* Spot platinum was up 0.2% at $885.08 per ounce,
palladium rose 0.5% at $954.68, while silver was
up 0.2% at $22.90 per ounce.
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(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing
by Rashmi Aich)

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