Gold prices remained stable following the release of the minutes from the Federal Reserve’s March meeting on Wednesday, as the metal’s appeal as a safe haven and inflation hedge countered the Fed’s predicted 50 basis point rate rise.

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Spot gold was flat at $1,923.50 per ounce, while US gold futures fell 0.2% to $1,923.10. Gold’s attraction has dwindled as the dollar has risen to nearly two-year highs.

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“You’ll see gold trade a little lower between now and the close today, but there was really no big surprise in those (Fed) minutes,” said RJO Futures senior market strategist Bob Haberkorn, adding that the downside to gold was limited and the markets were expecting half a point hike.

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According to the March 15-16 policy meeting minutes, Fed officials highlighted that one or more 50 basis point hikes in the target range may be appropriate at future meetings, the next one being in May, particularly if inflation pressures remained elevated or strengthened.

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The Fed hiked rates by 25 basis points (bps) during their March meeting, and the minutes revealed that the economic consequences of Russia’s invasion of Ukraine late in February prevented a 50-bps increase, reported Reuters.

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Rising interest rates and higher yields in the United States raise the opportunity cost of owning gold, which is also used as a hedge against rising inflation.

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However, gold prices may continue to rise for the next two quarters, as the Fed will be unable to raise interest rates quickly enough to battle excessive inflation, Haberkorn added.

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“There’s still a number of things that could trigger another rally in gold. Inflation continues to rise beyond current expectations, Ukraine/Russia talks collapsing or a recession,” said Craig Erlam, senior market analyst at OANDA.

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Among other precious metals, silver rose 0.4% to $24.40 per ounce, platinum declined 1.5% to $953.88, and palladium fell 2.2% to $2,189.43.