Gold prices rose in the morning, but remained largely within a recent trading range as a slew of signals from the Federal Reserve reiterated the prospect of higher-for-longer U.S. interest rates. Gold prices saw some relief this week as the dollar fell sharply from three-month highs. But further losses in the greenback now appeared limited, as Treasury yields remained close to recent peaks.<\/p>\n\n\n\n
The minutes of the Fed\u2019s late-January meeting, released on Wednesday, showed that the bank was in no hurry to begin cutting interest rates early. This notion was echoed by a slew of Fed officials this week, who cited concerns over sticky inflation and persistent strength in the U.S. economy. The CME Fedwatch tool showed traders pricing in a 53.6% chance for a 25 basis point cut in June, and a 28.7% chance for rates to remain steady. The latter rose from a 19.7% chance seen last week. The prospect of higher-for-longer rates bodes poorly for gold, given that it increases the opportunity cost of investing in the Gold.<\/p>\n\n\n\n
Spot Gold rose 0.2% to $2,029.78 an ounce, while Gold futures expiring in April rose 0.3% to $2,039.55 an ounce<\/p>\n\n\n\n