PRECIOUS-Gold slips from 3-week peak as dollar firms ahead of Fed minutes

  • 7/7/2021
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July 7 (Reuters) - Gold prices edged lower on Wednesday after hitting a three-week peak in the previous session, as a rebound in the dollar weighed on the safe-haven metal ahead of the release of minutes from the U.S. Federal Reserve’s June policy meeting. FUNDAMENTALS * Spot gold was down 0.1% at $1,795.39 per ounce, as of 0103, after hitting its highest since June 17 at $1,814.78 on Tuesday. * U.S. gold futures edged 0.1% higher to $1,795.80 per ounce. * Making gold more expensive for holders of other currencies, the dollar index hovered near a three-month high hit last week. * All eyes are on minutes from the Fed’s latest meeting, due at 1800 GMT, that is expected to shed more light on interest rate trajectory after a hawkish tilt from the U.S. central bank last month. * Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion. * U.S. services industry activity grew at a moderate pace in June, likely restrained by labor and raw material shortages, resulting in unfinished work continuing to pile up. * Benchmark 10-year Treasury yields dropped to their lowest in more than four months after data suggested the U.S. economy might not be as hot as some fear. * Investor sentiment in Germany fell by much more than expected in July, though remained at a very high level, while expectations for a strong economic recovery rose, a survey showed on Tuesday. * The Dow and S&P 500 fell on Tuesday, with financials and other groups closely tied to economic growth leading declines, while the Nasdaq edged higher to another closing record. * Silver eased 0.2% to $26.08 per ounce, palladium fell 0.5% to $2,780.68, and platinum slipped 0.6% to $1,085.62. DATA/EVENTS (GMT) 0600 Germany Industrial Output MM May 0600 UK Halifax House Prices MM June 0645 France Reserve Assets Total June 1800 US Federal Open Market Committee will release the minutes from its June 15-16 policy meeting (Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips) Our Standards: The Thomson Reuters Trust Principles.

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