Gold futures finished slightly higher after a turbulent trading session on Wednesday, failing to recover from the recent losses that pushed prices down from their highest levels since 2012 earlier this week.
Prices rebounded after the minutes of the March 3 and March 15 Federal Reserve meetings showed that the worst scenario for Fed staff was that an economic recovery would only take place next year.
The minutes showed “nothing really surprising,” said James Hatzigiannis, chief market strategist at Ploutus Capital Advisors.
There is “still a lot of uncertainty around the coronavirus and if it has peaked [the] In the United States and Europe, “he told MarketWatch. “Until we get more clarity on the slowdown in this epidemic, we don’t see the Fed making rate changes. Right now it looks like they are on the more cautious side, as they should be, and this is a bullish fundamental case for gold. “
was at $ 1,687 per ounce in electronic commerce shortly after the meeting minutes were posted. It stood at $ 1,684.30 an ounce on Comex on Wednesday, up 60 cents, or 0.04%. May
settled 27.5 cents, or 1.8%, down to $ 15,205 an ounce.
During Wednesday’s trading session, traders continued to follow information on events related to the COVID-19 pandemic and its effect on the global economy.
“The fundamental backdrop for the gold market remains bullish and the yellow metal has formed a solid initial support band of between about $ 1,605 and $ 1,660 on the daily chart,” said Tyler Richey, co-editor of Sevens Report Research.
“A further sharp drop in inflation expectations due to the marked deterioration in the economic outlook due to the negative impact of the global COVID-19 pandemic” could derail the gold rally, he said. said in Wednesday’s bulletin. “Unless there is such a development, gold should continue to rise, even if volatile trading continues in the weeks and months to come.”
See: What is the next step for gold prices in a context of continued market volatility
Gold remains more than 2% higher for the week, and exceeded Tuesday $ 1,700 an ounce to trade at its highest intraday level since late 2012 in what analysts have described as short compression. The gold then lost steam to end the falling day.
“In recent days we have witnessed an acceleration in the price of gold as it seems that investors are starting to realize that central banks will be forced to print a huge amount of money and set up other ultra-costly measures to fight coronavirus. induced by the crisis, “said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.
Among the other metals traded on Comex, copper from May
lost 0.6% to $ 2.26 a pound. July platinum
lost 1.5% to $ 733.60 an ounce, but June’s palladium
increased 0.04% to $ 2,095.20 an ounce.