Gold prices fall as investors await Federal Reserve meeting minutes
Date
5/23/2024 4:08:53 AM
(MENAFN) On Wednesday, Gold prices experienced a decline of over 1 percent as the momentum of price increases slowed. Investors took profits following recent highs, and attention turned to the minutes of the latest Federal Reserve meeting on monetary policy for new insights into the central bank's future interest rate decisions. By 14:19 GMT, spot gold had dropped 1.3 percent to USD2,389.39 per ounce, a significant fall from the record high of USD2,449.89 reached on Monday. Similarly, US gold futures decreased by 1.4 percent to USD2,392.70 per ounce. Everett Millman, a senior market analyst at Gainesville Queens, explained to Reuters that it is typical to see some profit-taking following a sharp and sustained rise in gold prices.
Investors were particularly focused on the upcoming release of the minutes from the US Central Bank's May monetary policy meeting, scheduled for 1800 GMT. Recent data has shown that US inflation is continuing its downward trend. However, Federal Reserve policymakers indicated on Tuesday that the bank would need to observe several more months of data to ensure that inflation is firmly on a path toward the targeted 2 percent rate before considering any reductions in interest rates. Historically, low interest rates and geopolitical uncertainties have increased the attractiveness of gold as an investment.
In the broader precious metals market, silver also saw a notable decline. Spot silver prices fell by 2.5 percent to USD31.15 per ounce after reaching their highest level in over eleven years on Monday. This trend reflects a broader pattern of profit-taking and cautious market behavior as investors await further guidance from the Federal Reserve on the direction of monetary policy and its implications for the market.
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