The post Gold rallies while US Dollar edges down ahead of Fed minutes appeared on BitcoinEthereumNews.com.

Gold price generates more gains as Fed policymakers are confident that inflation is broadly declining. The FOMC minutes for January policy will deeply explain the Fed’s steady interest rate decision. Investors see the preliminary S&P Global Manufacturing PMI for February at 50.5.  Gold price (XAU/USD) extends its bullish streak for the fourth straight trading session on Tuesday. The outlook for the precious metal has strengthened as commentary from Federal Reserve (Fed) policymakers that inflation is broadly moving in the right direction has faded the impact of stubborn Consumer Price Index (CPI) and Producer Price Index (PPI) data for January. The confidence of Fed policymakers that inflation is declining over the long term has trimmed the opportunity cost of holding non-yielding assets such as Gold. Meanwhile, investors await the Federal Reserve Open Market Committee (FOMC) minutes for the first monetary policy meeting of 2024. The FOMC minutes will provide cues about the timing of three rate-cuts, as forecasted by the Fed. On the economic data front, preliminary S&P Global PMI data for February will guide the forward action in the Gold price and the US Dollar, which will be published on Thursday. The US Manufacturing PMI is expected to exceed the 50.0 threshold for the second straight month at 50.5. An upbeat factory data would have a negative impact on the Gold price. Daily Digest Market Movers: Gold price jumps higher ahead of Fed minutes Gold price continues to generate gains and extend the upside above a four-day high of around $2,023. The upside in the precious metal seems restricted amid persistent fears of higher for longer interest rates by the Federal Reserve due to stubborn inflation data. The United States core inflation data is almost double the required rate of 2%, easing hopes of rate cuts by the Fed before June. The…

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Filed under: News - @ February 20, 2024 10:24 pm