Gold prices were little changed on Friday, as the U.S. dollar began to mildly recover from sharp losses posted in the previous session, although the minutes of the Federal Reserve’s latest policy meeting continued to weigh on the greenback.
Comex gold futures were little changed at $1,291.23 a troy ounce by 03:00 a.m. ET (07:00 GMT).
Trade volumes were expected to remain light with an abbreviated session for Comex floor trading on Friday, after U.S. markets remained closed on Thursday for Thanksgiving.
The greenback came under broad selling pressure after the minutes of the Fed’s most recent meeting showed that some policymakers remain concerned over persistently low inflation.
The report also showed that the Fed expects to raise interest rates in the “near term”, adding to expectations for a December rate hike.
However, the central bank added that economic data will determine the timing of future rate hikes, which could mean a slower pace than expected for 2018.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 93.13, off the previous session’s one-month low of 93.00.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures were up 0.08% at $17.13 a troy ounce.
