Gold Down as Dollar Inches Upwards
By Gina Lee
Investing.com – Gold was down on Wednesday morning in Asia, reversing its earlier gains, while investors await the release of the minutes from the U.S. Federal Reserve’s last policy meeting.
Gold futures were down 0.54% at $2,002.30 by 12:43 AM ET (5:43 AM GMT), but continued to remain above the $2,000-mark.
Earlier in the session, the yellow metal saw support from a weak dollar, which saw heavy losses during the overnight session. But the dollar’s small steps upwards on Wednesday saw investors retreat from gold.
Meanwhile, Asian stocks were mixed on Wednesday, despite a record run by U.S. markets during the previous session.
Investor sentiment was slightly lifted at the possibility of the U.S. Congress finally reaching a consensus over the latest stimulus measures, with Republicans hoping to reach an agreement with Democrats for their proposed $500 billion package.
Although the figure is far less than the amount that Democrats are seeking, House Speaker Nancy Pelosi indicated that Democrats could cut their stimulus proposal in half to reach a consensus with Republicans.
Pelosi spokesman Drew Hammill later reportedly clarified that Pelosi was referring to her previous stance of meeting Republicans “halfway, not cutting our bill in half.”
Investors will now be looking to the Fed’s minutes, due to be released later in the day, for clues on the interest rate outlook.
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