Gold prices moved higher on Wednesday, rising for a fifth straight day, as weak global stocks and a sharp plunge of the bitcoin pushed up the demand for the safe-haven yellow metal.
The dollar’s strength limited gold’s upside. The dollar index, which was around 89.95 (up 0.22%), later rose to 90.21, gaining more than 0.5%.
Gold futures for June ended up by $13.50 or about 0.7% at $1,881.50 an ounce, the highest settlement since January 7. Gold futures touched a high of $1,891.30 an ounce.
Gold futures edged down after the settlement, after the Federal Reserve released the minutes of its most recent monetary policy meeting.
The minutes showed that members of the Open Market Committee were of the view that any price increases from bottlenecks are likely to only have “transitory effects” on inflation.
The minutes also indicate that the Fed will not taper or allow rates to rise anytime soon.
Silver futures for July ended lower by $0.308 or 1.1% at $28.025 an ounce, while Copper futures for July settled at $4.5765 per pound, down $0.1490 or 3.2% from the previous close.
Bitcoin, the world’s largest cryptocurrency, tanked by close to 40% from its record high levels to US $31,000 on Wednesday, hitting its lowest level since February.
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