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Gold Rises, Silver Falls after Fed Meeting Minutes
 

Gold

Gold prices backed off highs on Wednesday as the U.S. dollar rallied against a basket of currencies while investors awaited minutes from the U.S. Federal Reserve's latest policy meeting for clues on interest rate hike path.

Spot gold was little changed at $1,293.41 per ounce, after touching its highest since May 15 at $1,297.84. U.S. gold futures for June delivery settled down $2.40, or 0.2 percent, at $1,289.60 per ounce.

Bullion was lifted after U.S. President Donald Trump cited a "substantial chance" his summit with North Korean leader Kim Jong Un will not take place as planned on June 12 amid concerns that Kim is resistant to giving up his nuclear weapons.

But investors worried about precious metals prices as most Federal Reserve policymakers thought it likely another interest rate increase would be warranted "soon" if the U.S. economic outlook remains intact, minutes of the central bank's last policy meeting showed.

Gold is expected to remain rangebound as the yellow metal failed to break above $1,300.

Silver

Silver was down 0.8 percent at $16.39 an ounce on Wednesday, snapping a five-day winning streak. It hit as low as $16.32 during the session, unleashing most bearish bets after the release of the Federal Reserve’s policy meeting minutes.

In the near term, silver prices will likely recover. We maintain our view that investors shall keep an eye on the resistance around $16.62. Failure to cross above the level may suggest limited gains.

 
Dealing Room, ICBC Beijing Branch
                       Huang Han


(2018-05-24)
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