COMEX gold slipped below a two-week high as traders paused ahead of the Federal Reserve's June meeting minutes, the first detailed record of Chair Kevin Warsh's monetary policy approach.
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Gold eases 0.6% to $4,138 as markets await Fed minutes
COMEX gold slipped below a two-week high as traders paused ahead of the Federal Reserve's June meeting minutes, the first detailed record of Chair Kevin Warsh's monetary policy approach.
COMEX gold fell 0.6% to $4,138.32 per ounce by 0232 GMT on Tuesday, trading below a two-week high as investors awaited the Federal Reserve's June meeting minutes for direction on interest rate policy.
"Gold price action looks like a continuation of last week, some basing out, forming a support level, waiting for direction from the Fed minutes to get a sense around what the Fed's thinking is on short-term interest rate policy," Nicholas Frappell, global head of institutional markets at ABC Refinery, said.
The Federal Open Market Committee's June 16-17 meeting minutes, due Wednesday at 2 p.m. ET, will be the first detailed record of Chair Kevin Warsh's tenure. Warsh removed forward guidance from the policy statement at his first meeting, arguing it reduces a central bank's ability to respond to new economic data. Fed Governor Christopher Waller countered Monday that forward guidance remains a "valuable tool" under the right conditions. Gold has retreated more than 25% from record highs reached earlier this year as the U.S.-Israeli war with Iran stoked inflation concerns and boosted the dollar.
Bullion hit a two-week high Monday after a ceasefire deal eased some of those inflation concerns and last week's weaker-than-expected U.S. jobs report — 57,000 new positions, the weakest reading in four months — prompted traders to dial back rate-hike expectations. The CME FedWatch Tool now prices a 56% chance of a September rate increase, down from more than 60% before the data. Lower interest rates make non-yielding bullion more attractive for investors. Hong Kong launched a central clearing system for gold on Tuesday and revived gold futures trading as it seeks to become a regional reserve hub for the precious metal.
Among other precious metals, spot silver slipped 1% to $61.48 per ounce, platinum eased 0.1% to $1,629.46, and palladium rose 0.4% to $1,272.85.
This article is for informational purposes only and does not constitute investment advice.
[1] Reminder: At 02:00 Beijing Time, the Federal Reserve will release the minutes of the June 16-17 FOMC monetary policy meeting[2] Gold eases as markets await Fed minutes for direction - CNBC[3] Gold eases as markets await Fed minutes for direction - Reuters[4] Markets Wait on Fed Minutes: What to Expect from Today’s Release[5] Fed Minutes to provide clarity on June's hawkish hold | FXStreet
