Gold slips from 3-week peak as dollar firms ahead of FED minutes

Gold prices drop from the 3-week peak 

Gold prices slipped lower on Wednesday after a 3-week peak in the previous session, as a rebound in the dollar brought down the metal prices ahead of the release of minutes from the U.S. Federal Reserve’s June policy meeting. Gold slips from 3-week peak as dollar firms ahead of FED minutes

Some key takeaways are:

  • Spot gold was down 0.1% at $1,795.39/ounce, as of 0103, after its highest price since June 17 at $1,814.78 on Tuesday.
  • U.S. gold futures edged 0.1% higher to $1,795.80/ounce.
  • Making gold became more expensive for holders of other currencies, with the dollar index hovering near a 3-month high hit last week.
  • All eyes are on minutes from the FED’s latest meeting, due at 1800 GMT, that is expected to give more information on interest rate trajectory after a hawkish tilt from the U.S. central bank last month.
  • Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding such non-yielding bullion.
  • U.S. services industry activity grew at a moderate pace last month, 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 4 months after data suggested the U.S. economy might not be as hot as some people feared.
  • Investor sentiment in Germany fell by much more than expected this month, 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% to $26.08/ounce, palladium fell 0.5% to $2,780.68, and platinum slipped 0.6% to $1,085.62.


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