Gold prices steadied after early falls on Thursday, as market participants weighed the U.S. Federal Reserve’s commitment to keep interest rates low for some time against likely higher inflation.
Spot gold was flat at $1,737.89 per ounce by 0407 GMT. U.S. gold futures fell 0.1% to $1,739.20 per ounce. Fed officials are committed to supporting the economy until its recovery is more secure, minutes of the U.S. central bank’s most recent policy meeting released on Wednesday showed.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.35 tonne to 1,028.69 tonnes on Wednesday. Lending support to gold, the U.S. dollar tracked Treasury yields lower and traded near a more than two-week low versus major peers on Thursday. Among other metals, silver fell 0.1% to $25.09 per ounce and palladium was down 0.3% to $2,614.98. Platinum rose 0.6% to $1,232.99.