Gold trading moved higher to a two -week high in the Asian session, amid the weakening US dollar as investors awaited the release of the FOMC meeting minutes report on Thursday.
In the Asian session, the precious metal gold traded higher around $ 1,797 per ounce, while gold futures were positive at $ 1,798 per ounce.
The gloomy movement of the greenback dollar has provided an opportunity for gold trading to rise higher. The dollar index traded lower around 92.16 against most major currencies.
Despite signs of a rapid economic recovery, continued stimulus and soaring inflationary pressures will continue to support demand for the yellow metal as a hedge to inflation and influence the short-term movement of gold.
NFP employment data readings, which were better than previous market expectations, failed to excite investors after seeing the unemployment rate also rise. This suggests that the Fed has time not to rush to reduce asset purchases and raise rates.
However, the release of the minutes report of the FOMC meeting this Thursday will likely offer a clearer indication to investors about the Fed’s recent expectations that an interest rate hike will occur in 2023.
