Gold prices slipped to a near two-week low on Wednesday, starting the new year on a less lustrous note as the US dollar continues its ascent while investors await minutes from the Federal Reserve’s latest meeting.

Spot gold (XAU/USD) dropped 0.8% to $2,033.48 per ounce by 1500 GMT – its lowest since December 20 – with a strengthening dollar making the yellow metal more expensive. All eyes are now on the Fed minutes due Wednesday evening for hints on potential rate cuts.

Traders are betting on a 75% chance of a 25 basis-point cut in March, but a gap remains between market hopes of aggressive easing and the Fed’s latest rate forecasts. Dovish signals could spur fresh gains for non-yielding gold, while hawkish tones may further dampen its New Year sparkle.

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Geopolitical tensions are also in focus as Israeli forces bombard the Gaza Strip after Hamas’ deputy leader was killed in Beirut last week. But for now, gold’s fortunes seem tied to dollar swings and the Fed’s rate outlook. With US jobs data looming Friday, bullion could see more New Year volatility before finding its footing.