On Wednesday, Gold futures on the COMEX division of the New York Mercantile Exchange dropped, due to a strengthening U.S. dollar index. The most active gold contract for February delivery fell 30.60 U.S. dollars, or 1.48 percent, to close at 2,042.80 dollars per ounce.
After the floor trading of gold closed, the minutes of the Federal Open Market Committee (FOMC) December meeting were released, indicating that Fed officials held that rates had peaked but the outlook remained uncertain, and they did not rule out further rate hikes.
Additionally, Richmond Federal Reserve President Thomas Barkin said on Wednesday that he had no way to forecast the timing of possible rate hikes or cuts, and that the policy changes will depend on economic data when delivering remarks to the Raleigh Chamber of Commerce in North Carolina.
He also mentioned that risks to a soft landing remain, including the delayed impacts from the current high interest rates, and the outside shocks or stickier-than-expected inflation which make a full return to the Fed’s target more difficult than anticipated.
Economic data released on Wednesday supported gold, with the Institute for Supply Management’s (ISM) manufacturing index at 47.4 percent in December 2023, up from November’s 46.7 percent, while the U.S. Labor Department reported that U.S. employers posted 8.8 million job openings in November, down slightly from October and the fewest since March 2021.
However, the U.S. big jobs report is due out on Friday, and the volatility in the market is projected to continue. In addition to gold, Silver for March delivery and Platinum for April delivery also fell, indicating a wider market trend.
