SINGAPORE: Gold prices slipped in Asian trade on Thursday, weighed down by a stronger dollar after minutes from the US Federal Reserve’s latest meeting highlighted inflationary pressures and confirmed that asset purchases tapering is on the cards this year.
Spot gold was down 0.3% at $1,798.06 per ounce, as of 0650 GMT, after gaining for six straight sessions. US gold futures eased 0.3% to $1,796.50.
“Following FOMC (Federal Open Market Committee) minutes, there was a modestly positive response from the dollar and a negative response from gold,” said DailyFX currency strategist Ilya Spivak.
“As we get digestion over those FOMC minutes, we’re starting to get some concern that perhaps we are looking at a situation where the Fed is starting to shift its focus to fighting inflation.” Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 1,040.48 tonnes on Wednesday. The European Central Bank will on Thursday announce the outcome of an 18-month strategy review, redefining its inflation target.