Gold trading moderately higher ahead of FOMC minutes – still above USD1,200

Gold is trading higher today, holding above the USD 1,200 level, after retreating for two days at the start of the week. Today the FOMC minutes will be in the focus for further indications on when the Federal Reserve is going to hike benchmark interest rates. Yesterday the U.S. Bureau of Labour Statistics released its Job Openings and Labour Turnover Survey (JOLTS) report on Tuesday. Job openings climbed to 5.133 million in February from 4.965 million in January. It was the highest level since January 2001. January's figure was revised down from 4.998 million. Analysts had expected job openings to rise to 4.978 million.

A stronger US dollar is putting pressure on gold, as it reduces the metal's appeal as an alternative asset and makes dollar-denominated commodities more expensive for holders of other currencies. Meanwhile, the delay in raising interest rates contributes to the demand for gold, as it reduces the relative cost of holding the precious metal.

Gold is currently quoted at USD1,210.90 +0,15% a troy ounce, still slightly above the USD1,200 level. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. On Tuesday the 17th of march gold traded as low as USD1,142.50, a three-month low.