Fed minutes pricing in gold

Gold extended its rise for a third day after the Fed minutes showed that officials supported the slowdown in interest rate hikes. Gold rose for the third day in a row along with silver after the Fed minutes released on Wednesday showed that officials supported the approach of softening the pace of interest rate hikes. Silver has recovered 20% from its September low and continues to trade between the $21.40 and $21.90 levels that have served as support and resistance points for the precious metal for years. “Gold had lost value due to the Fed’s aggressive interest rate hike policy, which caused dollar and bond yields to rise and caused spot gold to fall 15% from its March peak. The Fed’s positive outlook for slowing interest rate hikes can be considered a positive development for the precious metal,” Gregersen said in his assessment of silver. “It is encouraging that silver has been seeing higher levels since August. “If the precious metal breaks above $22 on a weekly basis, it could be a leading sign of higher prices to come,” he commented.