Gold Prices steady ahead of FED minutes, selling pressure emerges

Gold prices ticked higher today after mild overnight gains as investors hunkered down before the minutes of the Federal Reserve’s June meeting. However, selling pressure hit the gold market 30 mins before the release of the minutes.

Spot gold is currently trading at $1,1919 after hitting a daily high of $1,1935.

Focus now squares on the minutes of the Fed’s June meeting, for any more cues on the path of U.S. interest rates. While the central bank had kept rates on hold last month, it had also flagged at least two more hikes this year, given that inflation still remains high.

Fed Chair Jerome Powell also reiterated as much in a series of testimonies and addresses over the past two weeks.

Markets are pricing in an 88% chance the central bank will raise rates by 25 basis points later in July. While recent data showed that overall U.S. inflation declined, core inflation still remained sticky and well above the Fed’s target range.

The trend points to more pressure on gold in the coming months, although expectations of a potential U.S. recession have also driven some safe haven demand for the yellow metal.