Gold prices edged lower on Tuesday after reaching a two-week high in the previous session, as investors adopted a cautious stance ahead of the release of the US Federal Reserve’s June meeting minutes, which could provide fresh guidance on the future path of interest rates.
Spot gold declined 0.4 percent to $4,148.59 per ounce, while US gold futures for August delivery fell 0.2 percent to $4,160.20 per ounce in early trading.
Market attention is now focused on the minutes of the Federal Open Market Committee (FOMC) meeting held on June 16–17, scheduled for release on Wednesday. Investors are looking for clues on the Federal Reserve’s monetary policy outlook and the timing of any future interest rate decisions.
The precious metal has experienced heightened volatility in recent weeks as financial markets reassess inflation expectations, economic data and geopolitical developments.
Although gold has retreated from the record highs reached earlier this year, it rebounded on Monday to its highest level in two weeks after easing geopolitical tensions following the US-Iran ceasefire agreement and weaker-than-expected US employment data reduced expectations of an imminent interest rate increase.
Recent economic indicators also showed that the US services sector contracted in June as a temporary surge in orders linked to Middle East supply concerns faded. However, employment in the sector recovered after three consecutive months of decline, suggesting that the broader labour market remains resilient.
According to the CME FedWatch Tool, traders currently assign about a 57 percent probability of a Federal Reserve interest rate increase in September, down from more than 60 percent before last week’s employment figures were released.
Other precious metals also traded lower. Spot silver fell 0.8 percent to $61.57 per ounce, platinum declined 0.8 percent to $1,618.78, while palladium eased 0.4 percent to $1,264.11.
