Investing.com – Gold prices were lower on Wednesday, as investors looked ahead to the meeting minutes of the Federal Reserve and the dollar strengthened.
Comex for June delivery were down 0.24% to $1,288.90 a troy ounce as of 10:34 AM ET (14:34 GMT).
Investors are looking ahead to the latest meeting minutes from the Federal Reserve. The are set to be released at 2:00 PM ET (18:30 GMT). Investors will be looking closely for any sign of tightening monetary policy.
A recent increase in bond yields, along with positive economic data and rising inflation, has boosted expectations that the Federal Reserve will increase interest rates and tighten monetary policy. The Fed raised rates in March and is expected to raise rates twice more, with some investors expecting a third hike.
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors. Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
The price of bouillon was also driven lower by the rise in the greenback.
The , which measures the greenback’s strength against a basket of six major currencies, was at a five-month high of 93.89.
Gold is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises.
Elsewhere on the Comex, were down 1.15% to $16.385 a troy ounce. Among other precious metals, fell 0.96% to $900.10 while slipped 2.41% to $963.00 an ounce. futures decreased 1.95% to $3.071 a pound.
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Source: Investing.com
