Gold Wavers as Fed's Economic Optimism Boosts Yields, DollarBy
The S&P 500 Index rose for the seventh time in eight days
Fed highlights ‘substantial underlying economic momentum’
Spot gold slipped, erasing earlier gains, as Federal Reserve meeting minutes showed increasing confidence in the strength of the U.S. economy, curbing demand for the metal as a haven.
Fed officials “anticipated that the rate of economic growth in 2018 would exceed their estimates of its sustainable longer-run pace and that labor market conditions would strengthen further,” according to minutes of their Jan. 30-31 meeting released on Wednesday. The dollar headed for a fourth straight gain, and Treasury yields pushed higher.
Gold initially rose after the minutes were released, with the dollar briefly sliding as investors assessed comments that officials remain concerned with the pace of inflation. The metal has fluctuated this month as traders look for clues on the pace of monetary tightening, which curbs the appeal of non-interest-bearing assets such as bullion.