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Gold as a non-interest-paying asset could see demand take a hit
from higher rates.
Spot gold slipped 0.4% to $1,846 per ounce by 1003 GMT. U.S.
gold futures eased 0.1% to $1,844.50.
"We're in the post-Fed minutes phase and no great surprises in
there," independent analyst Ross Norman said.
"Gold seems to falter when it hits anything like a technical
resistance and then you get long liquidation and profit taking.
So this is the key issue for gold at the moment."
Minutes of the Fed's May 3-4 policy meeting released on
Wednesday showed few surprises, with all participants backing a
half-percentage-point rate increase to combat inflation.
Bullion is on track for its second consecutive monthly decline
after prices hit a 3-1/2 month low earlier this month on a
rallying dollar. Gold prices are up more than 3% since as the
greenback backtracked.
"The selling that pushed the precious metal to a three-month low
last week has abated, with exchange traded funds now seeing
inflows," ANZ analysts wrote in a note. [GOL/ETF]
The U.S. dollar held near one-month lows, while the U.S. 10-year
Treasury yield fell to its lowest level since April. [USD/]
{US/]
"The headwinds are a little less than they were... although it's
a gold friendly environment, gold seems unable to get momentum
behind it," Norman said.
In other metals, spot silver slid 0.7% to $21.81 per ounce,
platinum fell 0.4% to $939.83 and palladium was up 0.1% at
$2,006.97.
(Reporting by Swati Verma and Ashitha Shivaprasad in
Bengaluru;Editing by Elaine Hardcastle)
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