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Gold Falls as Investors Await Fed September Meeting Minutes
Spot gold fell 0.6% as the US dollar rose and traders awaited Federal Reserve minutes for clues on further rate increases.
On Oct 7, Gold prices slipped as the Dollar Index strengthened, while investors awaited Minutes from the Federal Reserve meeting for clues on future interest rate hikes.
In a high interest rate environment, investors tend to favor yield-generating assets over Gold, pressuring the non-yielding metal as market participants seek better returns.
Spot Gold fell 0.6% to $4,138.34 per ounce by 0451 GMT, while the Dollar Index rose 0.2%, making greenback-priced metals costlier for foreign investors.
San Francisco Fed Mary Daly said further rate hikes depend on inflation trends, while Kansas City Fed Jeff Schmid argued rates must rise further to control prices.
Delegates at the London Bullion Market Association conference in Sorrento, Italy, forecast Gold could reach $5,013 per ounce over the next 12 months; traders price in an 87% chance of a December rate hike.
Today, gold prices have declined as investors await the release of a report of the most recent meeting of the United States Federal Reserve, looking for indications of the course of monetary policy and interest rates.