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Gold lower ahead of Fed minutes

Published 08/10/2015, 10:22
Updated 08/10/2015, 10:24
© Reuters. Gold eases before Fed minutes
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Investing.com - Gold prices slid lower on Thursday, as investors looked ahead to the minutes of the Federal Reserve’s latest policy meeting for any fresh indications on the timing of an initial rate hike by the Federal Reserve.

U.S. gold futures for December delivery were last at $1,143.4 an ounce, holding below Wednesday’s two-week peaks of $1,152.9.

Gold strengthened on Wednesday, boosted by a weaker dollar and diminished expectations for higher U.S. interest rates.

Investors were looking ahead to the minutes of the Fed’s September meeting later in the day for any clues on whether it will hike rates before the years end or wait until 2016.

The dollar has come under pressure since last Friday’s weaker than expected U.S. jobs report prompted investors to push back expectations on the timing of an initial rate hike to next year.

Gold would benefit from any delay in raising U.S. interest rates as higher interest rates make gold look less competitive against interest-yielding assets.

A rate hike would also boost the dollar, which would make dollar-denominated gold more expensive to holders of other currencies.

Elsewhere in precious metals trading, U.S. silver futures for December delivery fell 2.67% to $ 15.66, snapping a four-day rally that saw the metal hitting three-and-a-half month highs of $16.08 on Wednesday.

Copper for December delivery fell 1.56% to trade at $2.33 a pound.

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