Gold dips ahead of Fed minutes
During Wednesday’s European trade, gold went down as traders looked ahead to the Fed’s minutes of its March policy gathering to get fresh indications on whether the Fed is going to increase its interest rates this year or not.
In New York June delivery gold futures managed to edge down 0.2%, trading at $1,227.20 per ounce, while just a day before this commodity gave a 0.84% soar, following steep descends in global equity markets.
The Fed surprised financial markets following the conclusions of March’s policy gathering by decreasing its rate hike projection for 2016 to 2 from 4, as previously planned.
Apart from that, most market participants will be paying much attention to speeches delivered by Loretta Mester, Cleveland President in order to keep judging the overall balance of opinion among the bank’s key policymakers on the prospect of further rate increases.
Last week the major bank’s chief Yellen assured financial markets that the Fed would be extremely cautious when it comes to raising its rates, considering numerous risks.