Last updated: July 06, 2023, 02:16 AM IST
New York, United States of America (USA)
Gold is highly sensitive to rising US interest rates as they increase the opportunity cost of holding non-performing precious metals.
Spot gold was down 0.5% to $1,916.49 an ounce at 2:32 p.m. EDT (1832 GMT). US gold futures closed 0.1% lower at $1,927.10.
Gold prices fell Wednesday, weighed down by a rally in the dollar and US Treasury yields, after minutes after the Federal Reserve’s policy meeting in June bolstered expectations that rates will remain high for longer.
Spot gold was down 0.5% to $1,916.49 an ounce at 2:32 p.m. EDT (1832 GMT). US gold futures closed 0.1% lower at $1,927.10.
“Gold plunges to daytime lows after Fed minutes showed that the June ‘pause’ was simply the path of least disagreement and that almost the entire committee eventually expected higher rates,” said Tai Wong, a New York established independent metal dealer.
“The upcoming JOLTS report and salary data will have a much bigger impact, especially if weaker than expected.”
A unified Fed agreed to keep interest rates stable at its June meeting, according to meeting minutes released Wednesday, even though the vast majority expected they would eventually have to tighten policy further.
Benchmark US 10-year Treasury yields rose to a nearly four-month high after the release, as the dollar rose 0.3% against its rivals.
Traders are counting on an 89% chance of a 25 basis point hike from the Fed at the July meeting following last month’s break, according to CME’s Fedwatch tool.
Gold is highly sensitive to rising US interest rates as they increase the opportunity cost of holding non-performing precious metals.
Investor attention now shifts to the Job Openings and Labor Turnover Survey, or JOLTS, and ADP, jobless claims from the U.S. Department of Labor on Thursday ahead of Friday’s non-farm payrolls report.
Traders also closely watched updates on China’s export controls on semiconductor metals as it mounts a technical battle with the United States ahead of US Treasury Secretary Janet Yellen’s visit to Beijing.
Spot silver was up 0.8% to $23.12 an ounce, platinum was down 0.1% to $914.11 while palladium was up 1% to $1,255.78.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – Reuters)