Gold drops as investors digest latest Fed meeting minutes

Gold drops as investors digest latest Fed meeting minutes

Gold fell on Thursday morning in Asia as investors proceeded to consider the U.S. Federal Reserve’s minutes from its newest policy meeting.

A strengthening dollar and weaker U.S. Treasury yield also defined gains for the yellow metal.

Gold futures were falling 0.30% to $1,796.65 by 12:35 AM ET (4:35 AM GMT). The dollar, which normally moves inversely to gold, edged up to its most distinguished level in three months.

Benchmark U.S. 10-year Treasury yields declined to their weakest after Feb. 19 after reporting gains during the prior session.

The Fed’s June meeting minutes designated the central bank to tap into its asset purchases as soon as 2021. Although Fed officials held substantial further progress on the U.S. economic recovery was generally regarded as not having yet been met, they accepted preparation was required should asset tapering be required earlier than expected.

A new wave in coronavirus cases inspired by the more virulent Delta variant could make consumers “pull back” and slow the U.S. recovery, Raphael Bostic, Atlanta Fed President, urged.

Johns Hopkins University data stated that the number of coronavirus deaths also surpassed the four million mark as of July 8.


European bank increasing inflation goal

The European Central Bank, on its part, will reportedly increase its inflation goal to 2% and leave room for any required overshoot in the outcome of 18-month strategy analysis, due later in the day.

SPDR Gold Trust (P: GLD) stated its holdings decreased 0.2% to 1,040.48 tons on Wednesday from 1,042.23 tons on Tuesday. In Australia, the Perth Mint said in a blog post that gold sales fell to an eight-month low in June but were higher year on year, while silver sales were at their most distinguished level in more than a year.

In other precious metals, silver reduced 0.2%, while palladium crept down 0.1% and platinum slid 0.4%.


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