Gold slips as dollar bounces ahead of Fed’s final minutes
* US Fed minutes should be released at 6:00 p.m. GMT
* Earnings in dollars after 3 days of sliding (redesign, add comments, update prices)
May 19 (Reuters) – Gold prices slipped on Wednesday as the US dollar strengthened, investors awaiting the final round of minutes of the Federal Reserve’s policy meeting to assess its position on interest rates at following the rise in inflation fears.
After rising for four sessions to its highest level since Jan. 29 to $ 1,874.80 on Tuesday, spot gold fell 0.5% to $ 1,859.19 an ounce at 10:06 a.m. GMT. US gold futures fell 0.4% to $ 1,859.90.
âThe recent gains we have seen in gold prices were quite unexpected. The dollar was indeed weaker, which helped,â said Julius Baer analyst Carsten Menke.
“I would say that part of the recent counter-initiative or today’s counter-initiative is profit taking, partly also driven by a slight rebound in the US dollar.”
The dollar index was on track to break a three-day losing streak.
Gold prices have risen by more than $ 190, or nearly 12%, since falling to a nine-month low in early March, with gains driven by a decline in the US dollar and higher prices. inflation expectations, the ingot being considered as a hedge against inflation.
Investors are awaiting release of the minutes from the Fed’s April 27-28 policy meeting, which is due at 6 p.m. GMT.
The minutes “could provide more insight into the Fed’s inflation outlook as well as the direction of monetary policy,” said Xiao Fu, head of commodities strategy at Bank of China. International.
Gold has been quite resilient recently because there has been a pickup in inflows into gold ETFs due to a resurgence of the coronavirus in parts of Asia, which has boosted demand for value refuge for gold. “
Silver slipped 1.8% to $ 27.69 an ounce after hitting a more than three-month high on Tuesday.
Palladium was down 0.8% to $ 2,880.12, while platinum was down 0.7% to $ 1,210.01.
Reporting by Arundhati Sarkar and Swati Verma in Bangalore; Edited by Hugh Lawson
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