After reaching a high of $1,869.49 per ounce on Tuesday, spot gold fell 0.2% to $1,857.67 per ounce. (08.43 GMT.) Gold futures in the United States fell 0.5% to $1,856.00 per ounce.
The dollar index increased after falling to its lowest level in a month the previous session. It’s making greenback-priced bullion more expensive for buyers holding other currencies.
“Investors will be looking for policy hints beyond June and July in FOMC (Federal Open Market Committee) minutes. Simultaneously, September rate hike expectations could be hugely pivotal for gold prices.”Stephen Innes, managing partner at SPI Asset Management
Later in the day, at 18.00 GMT, the FOMC will release the minutes from its May 3–4 policy meeting.
“Investors are debating how to assess the inflationary landing path now that peak inflation has passed.”
“The market is unsure how long it will take for things to normalize, and that uncertainty is helping gold.”Stephen Innes, managing partner at SPI Asset Management
Due to the fact that investors view gold as an inflation hedge. Rising short-term interest rates in the United States raise the opportunity cost of holding non-yielding bullion.
As the Federal Reserve ramps up its fight against 40-year-high inflation with what is expected to be a series of large interest-rate hikes, a U.S. central banker injected a note of caution, warning that rate hikes could cause “significant economic dislocation.”
According to Reuters technical analyst Wang Tao, spot gold may stabilize around a support level of $1,856 per ounce and retest a resistance level of $1,867.
For other Commodities;
- Spot silver fell 0.6% to $21.95 per ounce.
- Platinum fell 0.7 percent to $947.49.
- Palladium rose 0.5 percent to $2,015.99.
Read more: Commodities