NEW YORK: Prices fell to their lowest level in more than a week on Wednesday as the dollar strengthened, while investors monitored developments in trade negotiations between the United States and its trading partners.
Spot gold was down 0.1% at $3,297.19 per ounce, as of 9:23 am ET (1323 GMT), after hitting its lowest level since June 30 earlier. US gold futures fell 0.3% to $3,306.10.
The US dollar index hovered near a two-week high, making bullion less attractive for overseas buyers. The yield on benchmark 10-year US Treasury notes remained close to a three-week peak.
“In the short term, I note that the dollar is bouncing off those recent lows a little bit, taking some of the wind out of the sails of the gold market... from a longer term perspective gold prices are well supported,” said David Meger, director of metals trading at High Ridge Futures.
On the trade front, the European Union said it was working on reaching a deal with the United States by the end of the month, while Trump promised that he would deliver further tariff notices on unnamed countries.
Investors are also focused on the minutes of the Federal Reserve’s latest policy meeting, due at 2:00 pm ET (1800 GMT) for any hints on central bank’s interest rate trajectory.
Minutes from the Fed’s June 17-18 meeting are expected to show a divided central bank hesitant to commit to rate cuts amid uncertainty over the inflation impact of Trump’s tariff hikes.
“We would expect out of those minutes today to reiterate the likelihood that the Fed will not be lowering rates at its July meeting and the earliest would be at its September meeting,” Meger added.
Gold usually does well in uncertain times but tends to struggle when interest rates are high, since it doesn’t earn interest. Spot silver fell 1% to $36.40 per ounce, platinum shed 0.3% to $1,355.69 and palladium lost 1.5% to $1,094.44.
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