Gold goes down amid fears over hawkish Fed minutes
On Wednesday, gold prices tumbled during European trade, reversing overnight profits as market participants looked ahead to minutes of the Federal Reserves’ July policy gathering, that many feared could appear to be more hawkish than the statement.
In New York, December delivery gold futures sank 0.73%, trading at $1,346.95 per troy ounce, having grown 0.7% on Tuesday.
Meanwhile, traders Investors will be focusing on minutes of the Federal Reserve’s most recent policy gathering for further clues as the timing of the next American rate lift.
The Fed kept its interest rates intact, following its latest gathering on July 27 and told near-term risks to the American economic outlook had dropped. However, the major bank stopped short of indicating a near-term rate rise.
Speculation of an American rate lift in the nearer months mounted following Tuesday’s hawkish comments from a pair of Fed officials.