Gold Prices Remain Under Pressure Ahead of Fed Minutes
Investing.com - Gold prices remained under pressure on Wednesday, hovering at one-week lows as the U.S. dollar continued to be supported ahead of the minutes of the Federal Reserve's latest policy meeting, due to be released later in the day.
Comex gold futures were down 0.11% at $1,329.8 a troy ounce by 08:05 a.m. ET (12:05 GMT), the lowest since February 14.
Market participants were looking ahead to the minutes of the Fed's latest policy meeting for potential indications on the pace of future rate hikes.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% at 89.86, the highest since February 14.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
The dollar had been pressured lower recently by expectations for a faster pace of monetary tightening outside the U.S., which would lessen the divergence between the Fed and other central banks.
Sentiment on the greenback has also been vulnerable amid concerns over the U.S. deficit, which is projected to climb near $1 trillion in 2019 following the recent announcement of infrastructure spending and large corporate tax cuts.
Elsewhere on the Comex, silver futures lost 0.35% to $16.39 a troy ounce.
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