Gold slips from three-week peak as dollar firms ahead of Fed minutes
[BENGALURU] Gold prices edged lower on Wednesday after hitting a three-week peak in the previous session, as a rebound in the dollar weighed on the safe-haven metal ahead of the release of minutes from the US Federal Reserve's June policy meeting.
Spot gold was down 0.1 per cent at US$1,795.39 per ounce, as of 1.03am GMT, after hitting its highest since June 17 at US$1,814.78 on Tuesday.
US gold futures edged 0.1 per cent higher to US$1,795.80 per ounce.
Making gold more expensive for holders of other currencies, the dollar index hovered near a three-month high hit last week.
All eyes are on minutes from the Fed's latest meeting, due at 6pm GMT, that is expected to shed more light on interest rate trajectory after a hawkish tilt from the US central bank last month.
Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion.
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US services industry activity grew at a moderate pace in June, likely restrained by labour and raw material shortages, resulting in unfinished work continuing to pile up.
Benchmark 10-year Treasury yields dropped to their lowest in more than four months after data suggested the US economy might not be as hot as some fear.
Investor sentiment in Germany fell by much more than expected in July, though remained at a very high level, while expectations for a strong economic recovery rose, a survey showed on Tuesday.
The Dow and S&P 500 fell on Tuesday, with financials and other groups closely tied to economic growth leading declines, while the Nasdaq edged higher to another closing record.
Silver eased 0.2 per cent to US$26.08 per ounce, palladium fell 0.5 per cent to US$2,780.68, and platinum slipped 0.6 per cent to US$1,085.62.
REUTERS
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