Investing.com - Gold prices shot up on Wednesday after the
minutes from the Federal Reserve's March policy meeting revealed
that U.S. monetary authorities voted unanimously to scrap a
threshold calling for rate hikes once the unemployment rate hits
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery traded at $1,311.10 a troy ounce during
U.S. trading, up 0.15%, up from a session low of $1,301.20 and off
a high of $1,315.40.
The June contract settled up 0.83% at $1,309.10 on Friday.
Futures were likely to find support at $1,265.00 a troy ounce,
the low from Feb. 10, and resistance at $1,343.00, the high from
The Federal Reserve Board of Governors unanimously voted to
scrap its 6.5% threshold at which interest rates would rise once
the unemployment rate hits 6.5%.
In the past, the Fed had indicated rates could rise when the
unemployment rate hits or approaches 6.5% provided that figure
accompanied a 2.5% inflation rate.
Today, the headline unemployment rate stands at 6.7%, not far
from the previous threshold, though inflation remains well below
2.5%, prompting the Federal Reserve to do away with its rate-hike
"Participants agreed that the existing forward guidance, with
its reference to a 6.5% threshold for the unemployment rate, was
becoming outdated as the unemployment rate continued its expected
gradual decline," the minutes read.
"Most participants felt that the quantitative thresholds had
been very useful in communicating policy intentions when employment
was far from mandate-consistent levels, but, with the economy
having moved appreciably closer to maximum employment, the forward
guidance should emphasize that the Committee is focusing more on a
broader set of economic indicators."
Gold prices rose on the news while the dollar softened, as Fed
Chair Janet Yellen stating that policy must remain accommodative
for some time to come, and the March policy meeting minutes
reflected that stance.
Meanwhile, silver for May delivery was down 0.94% at US$19.868 a
troy ounce, while copper futures for May delivery were down 0.29%
at US$3.042 a pound.
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