Gold Rises Ahead of FOMC Minutes

Gold fell from the highest price in almost two weeks in New York before the U.S. Federal Reserve releases minutes of its March meeting that may give clues on the outlook for the central bank’s monetary policy.

Gold rose 0.8 percent yesterday as the Bloomberg Dollar Spot Index, a measure against 10 major currencies, reached the lowest since October and tension over Ukraine spurred demand for a haven. Pro-Russian activists released most of their hostages in Ukraine’s eastern city of Luhansk today after U.S. Secretary of State John Kerry accused Russia of using “special forces and agents” to fuel unrest.

The Fed reduced monthly bond purchases by $10 billion to $55 billion at its March meeting and releases minutes of that gathering later today. Chair Janet Yellen said last month the central bank may start to increase interest rates “around six months” after ending its asset-buying program. Gold slid 28 percent last year, partly on concern that stronger U.S. growth would mean less monetary stimulus.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza