The publication of the FOMC meeting minutes report has restrained gold trading from declining lower and prompted the US dollar to depreciate.
According to meeting minutes released earlier this morning, the Federal Reserve (Fed) said that inflation well above the central bank’s long -term target of 2% continues to impact economic activity.
Following that, the Fed continued to reiterate its stance for more aggressive monetary policy action by describing a rate hike of 50 basis points at the next meeting as appropriate.
The gold market seems to be taking the Fed’s hawkish stance calmly to defend its position around the $ 1,850 price level in the Asian session.
The Fed’s cautious statement on inflation will continue to be a threat to the economy, to some extent providing support for gold.
Earlier, gold had slipped from a two -week high reached on Tuesday due to the rise of the US dollar. However, after the FOMC minutes were published the yellow metal regained investor support to rise again.
Investors are now awaiting the release of US gross domestic product (GDP) data for the first quarter of 2020 to determine the movement of gold and the greenback dollar by the end of the week.
