Gold down as dollar gains, investors ponder over minutes from Fed meeting

08.07.2021 - Davydova Maria
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.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?