BENGALURU- Gold prices were steady and hovered above key $2,400 level on Wednesday, while investors await minutes from the Federal Reserve’s latest policy meeting for fresh signals on the timing of US interest rate cuts.
Spot gold held its ground at $2,415.35 per ounce. Bullion hit a record high of $2,449.89 on Monday.
US gold futures were down 0.3 percent at $2,419.00.
One of the “factors supporting gold is fiat currency debasement undertaken by the US and the developed nations due to the rising budget deficits,” said Kelvin Wong, a senior market analyst for Asia Pacific at OANDA.
“There’s a potential that stimulus fiscal policy will play a higher role in stimulating these countries, and if this takes shape, the confidence of the individual country currency will be eroded.”
Minutes of the Fed’s May policy meeting is due at 1800 GMT. Traders are currently pricing a 64 percent chance of a rate cut by September.
Recent data suggested that US inflation resumed its downward trend, but Fed policymakers said on Tuesday the US central bank should wait several more months to ensure that inflation really is back on track to its 2 percent target before cutting interest rates.
