Gold prices edged lower on Tuesday, trading below the two-week high reached in the previous session, as investors awaited the release of the U.S. Federal Reserve’s June meeting minutes for clues about the monetary policy direction under the Fed’s new Chair, Kevin Warsh.
Spot gold fell 0.4% to $4,148.59 per ounce as of 00:43 GMT, while U.S. gold futures for August delivery declined 0.2% to $4,160.20 per ounce.
The minutes of the Federal Open Market Committee (FOMC) meeting, held on June 16–17, are scheduled for release on Wednesday.
Data released on Monday showed that activity in the U.S. services sector slowed in June as some of the boost from companies rushing to place orders during the Middle East conflict faded. However, employment rebounded after contracting for three consecutive months, suggesting that the labor market remains resilient.
Gold prices have fallen by more than 25% from the record highs reached earlier this year, after the U.S.-Israeli war with Iran fueled inflation concerns, strengthened the U.S. dollar, and increased expectations of further interest rate hikes.
Despite the recent decline, the precious metal climbed to a two-week high on Monday after the U.S.-Iran ceasefire agreement eased inflation concerns. Weaker-than-expected U.S. jobs data released last week also prompted markets to scale back expectations of near-term interest rate increases.
According to the CME FedWatch Tool, traders now see roughly a 57% probability of an interest rate increase in September, down from more than 60% before the latest employment data.
Among other precious metals, spot silver fell 0.8% to $61.57 per ounce, platinum declined 0.8% to $1,618.78 per ounce, and palladium slipped 0.4% to $1,264.11 per ounce.
Source: Reuters
