Gold Gains On Dovish Fed Minutes

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Gold prices rose on Thursday as the dollar and treasury yields retreated on dovish signals from the Federal Reserve.

Spot gold rose 0.4 percent to $1,745.02 an ounce while U.S. gold futures were up 0.3 percent at $1,746.05.

The U.S. dollar traded near its lowest in more than two weeks versus major peers and yields on longer-term U.S. Treasuries dropped after the Federal Reserve in its latest policy meeting minutes gave no indication a tightening of monetary policy was imminent.

“Participants noted that it would likely be some time until substantial further progress toward the Committee’s maximum-employment and price-stability goals would be realized and that, consistent with the Committee’s outcome-based guidance, asset purchases would continue at least at the current pace until then,” the Fed’s March 16-17 minutes revealed.

Meanwhile, the Biden administration released more details about the tax plan, which raises the federal corporate income tax rate to 28 percent from 21 percent.

Traders await a speech from the Fed Chair Jerome Powell at a virtual IMF seminar, where he outlines his views on global recovery and the monetary policy outlook.

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