Gold price extends upside amid increasing geopolitical uncertainty

As the US dollar remains under pressure ahead of the publication of the FOMC minutes, the price of gold advances on geopolitical tensions and investors are awaiting FOMC minutes for cues on the outlook of the US rate policy. Gold is trading at $2025.48 per ounce at the time of writing. It is up 0.07%

Fed’s Goolsbee said higher interest rates for a longer period can impact labor market conditions. Gold price extends its gains spell to a fifth day on Wednesday amid the Red Sea crisis.

Chicago Federal Reserve Bank President Austan Goolsbee identifies the consequences of keeping interest rates higher for longer on the United States labor market.

While most Fed policymakers say that resilient economic indicators such as Retail Sales and Employment data have bought time to discuss more on rate cuts as these could flare up price pressures again, Chicago Fed Bank President Austan Goolsbee warned that high rates for an extended period could impact the employment side of the Fed’s dual mandate.

The Fed’s dual mandate is based on achieving full employment and inflation staying at around 2%. Goolsbee and other Fed policymakers said that inflation is on track to the central bank’s target of 2% despite the acceleration seen in January.


Meanwhile, investors await the publication of the Federal Open Market Committee (FOMC) minutes for January’s monetary policy meeting. The release will likely provide more cues about when the Fed will start reducing interest rates.