Gold Prices Slide as Fed Minutes Signal Expectations of Higher Rates - News18
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Last Updated: July 06, 2023, 02:16 IST New York, United States of America (USA) Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion. Spot gold was down 0.5% at $1,916.49 per ounce by 02:32 p.m. EDT (1832 GMT). U.S. gold futures settled 0.1% lower at $1,927.10.
Gold prices fell on Wednesday, weighed down by an uptick in the dollar and U.S. Treasury yields after minutes from the Federal Reserve’s June policy meeting cemented expectations that rates will stay higher for longer. Spot gold was down 0.5% at $1,916.49 per ounce by 02:32 p.m. EDT (1832 GMT). U.S. gold futures settled 0.1% lower at $1,927.10. “Gold slumps to day’s lows after Fed minutes showed that the ‘pause’ in June was simply the path of least dissent and almost the entire committee expected ultimately higher rates," said Tai Wong, a New York-based independent metals trader. “The upcoming JOLTS report and payrolls data will have much...