Gold prices are trading mostly unchanged as the Fed’s latest minutes reveal plans for extended monetary easing even as the central bank expects the US economy to post a rapid recovery from the coronavirus crisis. At the time of writing, GOLD is trading at a little above $1,742.

The minutes from the Fed’s March policy meeting were released in the previous session and indicate officials’ interest in continuing with the dovish policy until the economic recovery to pre-pandemic levels is more certain. This sentiment is supporting the safe haven appeal of gold in global markets for now.

The minutes indicate the Fed’s willingness to keep interest rates at low levels for a longer period of time, but with the US economic recovery gathering pace, markets are unconvinced and anticipate a shift in the Fed’s outlook soon. Low interest rates make the yellow metal a more attractive investment and typically drive its prices higher.

However, a risk-on mood among investors is keeping the safe haven metal from making gains as the preference turns towards riskier instruments. The increase risk appetite among traders has also driven weakness in the US dollar which is lending support to gold prices for as they share a negative correlation with each other.