- Gold prices fell in early global trading on Wednesday, but remained hovering above $2,400, as investors awaited the release of the minutes of the latest US Federal Reserve meeting on monetary policy, looking for new indications on the possible timing of interest rate cuts.
- Spot gold fell 0.3% to $2,413.50 an ounce, after hitting a record high of $2,449.89 on Monday, while U.S. gold futures fell 0.4% to $2,416.80 an ounce.
- The minutes of the May Federal Reserve monetary policy meeting are due later today, and traders currently expect a 64% rate cut by September.
- Recent data showed that U.S. inflation has resumed its downward trend, but Fed policymakers said on Tuesday that the bank should wait several more months to ensure that inflation is actually back on track to its 2 percent target before cutting interest rates.
- Low interest rates and geopolitical uncertainty enhance the attractiveness of investing in gold.
- Gold prices will remain above $2,400 amid expectations of a more accommodative interest rate environment later in the year, but a rally to new record highs may require a weaker dollar, bond yields or increased demand for the precious metal, said Tim Waterer, chief market analyst at KCM Trade.
- Among other precious metals, spot silver fell 0.8% to $31.70 an ounce after hitting its highest level in more than 11 years on Monday, while platinum rose 0.3% to $1,049.55 an ounce, while palladium fell 0.8% to $1,017.73 an ounce.
