Gold down as dollar gains, investors ponder over minutes from Fed meeting
Gold took a tumble on Thursday morning in Asia as investors mulled over the minutes from the US Federal Reserve’s latest policy meeting. The growth of the dollar and a lower US Treasury yield has also hindered gains for the precious metal.
Gold futures skidded 0.30% to %1,796.65 by 12:35 AM ET (4:35 AM GMT). The dollar, which mostly moves inversely to gold, rose to its highest level in three months on Thursday.
Benchmark US 10-year Treasury yields fell to their lowest since February 19 after reporting gains during the previous session.
The minutes from the Fed’s June meeting hinted at the central bank’s steps towards tapering its asset purchases as soon as 2021. Albeit the position of Fed officials that further progress on the US economic recovery “was generally seen as not having yet been met,” they still agreed that preparation was needed should asset tapering would be required sooner than expected.
SPDR Gold Trust said its holdings dipped 0.2% to 1,040.48 tons on Wednesday from 1,042.23 tons on Tuesday. In Australia, the Perth Mint stated 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 experiencing their highest level in more than a year.
Going over other precious metals, silver slid 0.2% as palladium and platinum crept down 0.1% and 0.4%, respectively.