Gold prices fell on Wednesday as investors turned their attention to the minutes of the U.S. Federal Reserve’s latest meeting for fresh clues about the path of monetary policy.
Spot gold fell 0.3% to $4,150.23 per ounce by 0145 GMT, while U.S. gold futures declined 0.2% to $4,177.60.
Minutes from the latest meeting of the Federal Open Market Committee are due to be released later on Wednesday.
Frank Walbaum, a market analyst at Naga.com, said the precious metal was likely to remain relatively stable, with a slight downside bias.
“The minutes will clarify the Federal Reserve’s monetary policy and the extent to which policymakers support further interest-rate hikes,” Walbaum said, adding that they could also reshape expectations for upcoming rate increases. He noted that subsequent moves in long-term U.S. Treasury yields, the dollar or oil prices—driven by developments in the Middle East—could reinforce the direction of gold prices.
Recent comments from Federal Reserve officials have reaffirmed the U.S. central bank’s commitment to controlling inflation.
Mary Daly, president of the Federal Reserve Bank of San Francisco, said on Tuesday that the need for further rate increases would depend largely on whether inflationary shocks fade or continue to intensify.
Recent weak economic data have reduced expectations for an interest-rate hike in October. However, traders still see an 85% probability of a rate increase in December.
Higher interest rates tend to make yield-bearing assets more attractive to investors than gold.
Participants at the annual London Bullion Market Association conference in Sorrento, Italy, on Tuesday forecast that gold could reach $5,013 per ounce over the next 12 months.
U.S. Vice President J.D. Vance told Reuters in an exclusive interview that Iran must substantially reduce its uranium-enrichment capabilities to meet U.S. demands and end the conflict, which has continued for more than seven months, even as Washington remains uncertain about how Tehran is making decisions in the negotiations.
Among other precious metals, spot silver fell 1% to $61.12 an ounce, while platinum rose 0.2% to $1,704.25 and palladium declined 0.3% to $1,168.20.
Source: Reuters
