Prospect of further US Fed rate hikes drives gold down
Gold is not making huge headway even though we are in a slightly weaker dollar environment, a Mitsubishi analyst says
London — Gold drifted lower on Thursday despite a weaker dollar as investors worried that US Federal Reserve minutes would highlight the prospect of further rate hikes. Spot gold was down 0.3% at $1,252.15 an ounce by 9.40am GMT. The metal touched a one-week high of $1,261.10 in the prior session and had gained more than $20 from Tuesday’s low of $1,237.32, its weakest since December 12. US gold futures for August delivery were little changed, up 0.03% at $1,253.80 an ounce. The dollar index fell to its lowest level in more than a week while the euro climbed 0.5% to near three-week highs following strong German data. "Gold is not making huge headway even though we’re in a slightly weaker dollar environment. The market is very much in a wait-and-see mode ahead of the Fed minutes," said Jonathan Butler, commodities analyst at Mitsubishi in London. The minutes of the US central bank’s June meeting are scheduled to be published at 2pm EDT (6pm GMT). During the discussion, the Fed had pr...
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