Gold is showing little movement in the Thursday session. In North American trading, the spot price for an ounce of gold is $1291.23, down 0.08% on the day. U.S markets are closed for the Thanksgiving holiday, and there are no U.S events on the calendar.
Federal Reserve policymakers remain upbeat about the U.S economy, according to the minutes of the most recent policy meeting. The minutes, released on Wednesday, indicated that policymakers expected the U.S economy to continue showing strong growth, and predicted that interest rates will be raised in the “near term”. The members discussed the vexing question of why inflation has been persistently low (no quick-fix solution was provided), with most agreeing that a tight labor market should lead to higher inflation levels. Although policymakers did not provide further hints about the timetable of a rate hike, the markets remain convinced that additional rates are imminent. The odds of a rate hike in December are 91%, and the odds a January raise are at 89%.
Investors continue to monitor President Trump’s tax reform bill as it winds it way through Congress. Gold prices have been fluctuating since the House passed a tax bill last week, and traders can expect the movement to continue when the Senate votes on its version of the bill after Thanksgiving. Gold prices started the week with considerable losses, but then reversed directions and posted gains on Tuesday and Wednesday. If Congress does succeed in enacting a new tax code, the US dollar could make strong gains, at the expense of gold.
