Gold futures settled higher on Wednesday, then moved up in electronic trading to top $1,210 an ounce after minutes from the Federal Reserve Open Market Committee’s April meeting showed that only a few offi
cials expect an interest-rate hike in June.
Gold for June delivery GCM5, was at $1,211.10 an ounce in electronic trading on Globex after the minutes, after settling at $1,208.70 an ounce, up $2, or 0.2%, on Comex.
The April minutes of the policy-setting FOMC were released shortly after the close of regular metals trading on Comex. Only a “few” Fed officials thought economic data would improve enough to trigger a rate hike at the next meeting in June.
Higher interest rates can support the dollar, which can be bearish for dollar-denominated gold.
Gold on Monday rose to its highest level in more than three months, but gave back some of those gains to finish Tuesday at its lowest level in a week. The yellow metal has been stuck in trading range between resistance at $1,225 an ounce and support at $1,180.