GOLD prices edged up on Thursday (Feb 22) supported by safe-haven demand amid rising geopolitical tensions in the Middle East and a softer US dollar, while minutes of the latest US Federal Reserve meeting dampened hopes for an early interest rate cut.
Spot gold was up 0.1 per cent at US$2,026.9 per ounce, as at 0100 GMT. US gold futures edged 0.1 per cent up at US$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 US dollar index was down 0.1 per cent, 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 to 31 session.
Markets are currently pricing in a 70 per cent 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 US Federal Reserve interest rate cuts, analysts at Goldman Sachs said.
Spot platinum was up 0.2 per cent at US$885.08 per ounce, palladium rose 0.5 per cent at US$954.68, while silver was up 0.2 per cent at US$22.90 per ounce. REUTERS
