|
Spot gold fell 0.6% to $1,855.30 per ounce by 1007 GMT, on track
to snap a five-day winning streak. U.S. gold futures dropped
0.6% to $1,854.80.
The dollar was up 0.4% after hitting its lowest level in a month
on Tuesday.
"The dollar will probably once again reach towards those
maximums that it touched earlier in May because the FOMC minutes
will reveal that the Fed is committed to its current hawkish
stance and these are bad news for gold," said Ricardo
Evangelista, senior analyst at ActivTrades.
The Federal Open Market Committee (FOMC) is expected to release
the minutes from its May 3–4 policy meeting at 1800 GMT.
While markets expect 50-basis-point rate hikes over the next
several months, there are also concerns that aggressive policy
tightening could weigh on economic recovery.
In an essay published on Tuesday, Atlanta Fed President Raphael
Bostic warned headlong rate hikes could create "significant
economic dislocation".
Gold is highly sensitive to rising U.S. interest rates, which
increase the opportunity cost of holding non-yielding bullion
and also boosts the dollar, in which it is priced.
"As we do not see the U.S. economy slipping into recession, the
recent revival of safe-haven demand should be temporary, leaving
little upside to prices," Julius Baer analyst Carsten Menke said
in a note, adding silver should continue moving in gold's
slipstream.
Spot silver fell 1.1% to $21.84 per ounce, platinum shed 1.2% to
$942.55, and palladium eased 0.3% to $2,000.74.
(Reporting by Eileen Soreng in Bengaluru; Editing by Emelia
Sithole-Matarise)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
