Gold prices hover two-week peak on dovish central banks
Gold prices traded on Thursday near a two-week high touched in the previous session, as the dollar struggled after the U.S. Federal Reserve and the European Central Bank signaled steady interest rates amid a slowing global economy.
Spot gold was flat at $1,307.91 per ounce as of 0110 GMT, after touching its highest since March 28 at $1,310.50 in the previous session.
U.S. gold futures were down about 0.2 percent at $1,311.80 an ounce.
The dollar held near two-week lows as Fed minutes reinforced dovish policy expectations while the pound held recent ranges after European leaders extended the deadline for Britain to leave the union, averting a no-deal Brexit.
The Fed is likely to leave interest rates unchanged this year given risks to the U.S. economy from a global slowdown and uncertainty over trade policies and financial conditions, according to the minutes from its March 19-20 policy meeting.
ECB President Mario Draghi raised the prospect of more support for the struggling eurozone economy on Wednesday if its slowdown persisted, saying the central bank had “plenty of instruments” with which to react.
U.S. consumer prices increased by the most in 14 months in March, but the underlying inflation trend remained benign amid slowing domestic and global economic growth.
European Union leaders agreed to grant British Prime Minister Theresa May a new Brexit deadline of Oct. 31, officials said, after French President Emmanuel Macron opposed efforts to give her another year.
German Finance Minister Olaf Scholz has said financial leaders must use talks in Washington this week to avoid any escalation in trade disputes as political risks pose the biggest threat to a slowing world economy.
The United States and China have largely agreed on a mechanism to police any trade agreement they reach, including establishing new “enforcement offices,” U.S. Treasury Secretary Steven Mnuchin said on Wednesday.
The London Bullion Market Association (LBMA) plans to create an official committee for gold and silver refineries, after some complained their interests were being ignored.
Source: Reuters
