Gold prices flat as market awaits Fed minutes for

rate-hike path
Spot gold was flat at $1,739.90 per ounce by 0121 GMT

Reuters  November 23, 2022 Last Updated at 08:08 IST

Gold
prices
were flat
on

Photo: Bloomberg
Wednesday, as investors held back from making big bets ahead of the U.S. Federal Reserve's latest policy
meeting minutes, which could offer clues on further interest rate hikes.

Spot gold was flat at $1,739.90 per ounce by 0121 GMT. U.S. gold futures edged 0.1% higher to $1,741.60.

"There is some nervousness in the market ahead of the Fed minutes," said Edward Meir, an analyst with
ED&F Man Capital Markets.

Market participants are awaiting the minutes of Fed's Nov. 1-2 policy meeting due at 1900 GMT. U.S.
durable goods data and weekly initial jobless claims are also on the radar.

At the beginning of this month, the U.S. central bank delivered a fourth consecutive 75 basis-point rate hike
to tame inflation in what has become the fastest tightening of monetary policy in 40 years.
The Fed may need to raise interest rates to a higher level and hold them there for longer in order to
successfully moderate consumer demand and bring down high inflation, Kansas City Fed President Esther
George said on Tuesday.

Although gold is seen as a hedge against inflation, rising U.S. interest rates dull non-yielding bullion's
appeal.

"In the near term, expect gold prices to work a bit higher from here into year-end because I see the dollar
weakening some more and we are very close to peaking out on inflation and interest rates," Meir said.

Fed fund futures are now pricing in a 79% chance of 50-basis point hike in the December meeting.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.10% to
906.93 tonnes on Tuesday from 906.06 tonnes on Monday. [GOL/ETF]

Spot silver eased 0.3% to $21.01 per ounce, platinum rose 0.2% to $992.62, while palladium fell 0.2% to
$1,857.30.

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)