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·         Fed sees stronger economy and higher inflation, but no rate hikes

The Federal Reserve kept rates anchored near zero and maintained the current pace of asset purchases, following the conclusion of this week’s meeting.

Officials also upgraded expectations for GDP growth and inflation and cut estimates for the unemployment rate.

More members foresee rate hikes in coming years, but not enough to change the forecast for none through at least 2023.

Gold rises 1% after Fed reaffirms dovish stance

Gold prices rose over 1% on Wednesday after the U.S. Federal Reserve reiterated its accommodative monetary policy which also weakened the dollar.

·         Spot gold rose 0.8% to $1,743.93 per ounce by 1642 EDT, after gaining as much as 1.2%.

·         U.S. gold futures settled 0.2% down at $1,727.10.

·         The Federal Reserve on Wednesday repeated its pledge to keep the benchmark overnight interest rate near zero for years to come.

·         The central bank sees the economy growing 6.5% this year, the most since 1984, and unemployment falling to 4.5% by year's end.

·         "One of the key takeways is the that Fed needs to see results in terms of economic growth, inflation and employment before they move to hike rates and not forecasts and that should support gold in the near-term," said Edward Moya, senior market analyst at OANDA.

·         The dollar fell 0.5%, making greenback-denominated gold cheaper for other currency holders.

·         "The one fly in the amber is that the bond market is so far not that impressed, which could help support the dollar and put a lid on the gold rally," Tai Wong, a trader at investment bank BMO in New York said, pointing to elevated U.S. Treasury yields.

·         Benchmark yields remained high after the Fed projected a jump in economic growth with no rate hikes through 2023.

·         Gold is seen as a hedge against inflation, but rising Treasury yields have challenged that status as they translate into a higher opportunity cost of holding bullion.

·         Gold is less appealing to investors as yields are being driven by nominal rates instead of inflation expectations, TD Securities commodity strategist Daniel Ghali said.

·         Silver rose 1.3% to $26.30 an ounce.

·         Platinum was steady at $1,211.81.

·         Palladium rose 2.8% to $2,568.61, having hit an over one-year high of $2,578.31 earlier.

·         CORONAVIRUS UPDATES:

COVID-19 infections are still rising in 70 countries.

Global Cases: 121.80M (+526,765)

Global Deaths: 2.69M (+9,632)

 

No. 1

U.S. Cases: 30.29M (+61,052)

U.S. Deaths: 550,578 (+1,211)

 

No.2-5

Brazil Cases: 11.70M (+90,830)

India Cases: 11.47M (+35,838)

Russia Cases: 4.41M (+8,998)

UK Cases: 4.27M (+5,758)

 

No.115

Thailand Cases: 27,402 (+248)

Thailand Deaths: 88 (+1)

·         Global Vaccination 

 So far 126 countries have begun vaccinating people for the coronavirus and have administered at least 390,223,000 doses of the vaccine.

·         Japan to lift Tokyo area state of emergency as planned on Sunday: minister

·         WHO recommends AstraZeneca vaccinations continue, says benefits still outweigh risks

WHO’s Advisory Committee on Vaccine Safety has been reviewing the available data on the vaccine. On Wednesday, the WHO issued a statement in which it said that “vaccination against COVID-19 will not reduce illness or deaths from other causes.”

·         Taiwan clears AstraZeneca vaccines, shots may start next week

·         Italy and France ready to restart AstraZeneca vaccinations if regulators give the green light

·         EU proposes vaccine certificates for travel — but citizens might not need a shot

·         Bank of England to keep recovery hopes in check despite vaccine progress

·         S&P Affirms U.S. Sovereign Ratings At 'AA+'

S&P Global Ratings affirmed the sovereign ratings of the U.S. at 'AA+' with 'stable' outlook on Tuesday.

The agency maintained the ratings citing its strong institutions, diversified and resilient economy, coupled with monetary policy flexibility, and unique status as the issuer of the world's leading reserve currency.

 

·         Morgan Stanley becomes the first big U.S. bank to offer its wealthy clients access to bitcoin funds

·         China is building up its ability to weaponize trade, new report says

China is diversifying its supply of critical natural resources — a move that will shore up Beijing’s ability to weaponize trade against its geopolitical rivals, according to a newly published report by risk consultancy Verisk Maplecroft.

·         Shares in Japan, South Korea rise 1% as investors react to Fed decision

Shares in Japan and South Korea advanced Thursday as investors reacted after the U.S. Federal Reserve’s policymaking committee voted to keep short-term borrowing rates near zero in a widely expected move.

The Nikkei 225 in Japan rose 1.4% while the Topix index added 0.93%. South Korea’s Kospi climbed 1.17% and the Kosdaq was up 0.83%

Reference: CNBC, Reuters,Nasdaq, Worldometers