U.S. Fed minutes due at 1900 GMT
Current gains in gold and silver likely to last analyst

Jan 4 Reuters Gold prices extended their New Year rally to jump more than 1 and hit their highest since midJune on Wednesday, helped by a weaker dollar and growing expectations of less aggressive interest rate hikes at upcoming Federal Reserve meetings.

Spot gold jumped 1 to 1,857.71 per ounce by 1326 GMT, hitting its highest since June 13 earlier. U.S. gold futures rose 0.8 to 1,860.00.

The dollar index, meanwhile, slipped 0.4, making gold less expensive for overseas investors.

There is some optimism in the market ahead of the release of minutes from the Fed39;s December meeting later in the day, Kinesis Money external analyst Carlo Alberto De Casa said.

Majority of investors are betting on a 0.25 rate hike in the next Fed meeting, differently from a few weeks ago, when another 0.50 rate was given as almost sure.

The minutes from the last meeting, at which the Fed raised rates by 50 basis points after four consecutive 75 basis point hikes, are due at 1900 GMT.

According to Daniela Hathorn, senior market analyst at Capital.com, there is still some reluctance from Fed members to give in to weaker economic data.

Their decision to lower the pace of rate hikes might have more to do with a waitandsee approach as they determine the impact of past rate hikes, rather than them being concerned about the recent worsening economic data, which would support rate cuts throughout 2023…