Gold prices slipped in Asian trade on Thursday, weighed down by rising uncertainty over U.S. interest rates after hawkish signals in the Federal Reserve’s July meeting minutes.
Spot gold (XAU/USD) traded at $3,339.20 an ounce by 10:00 GMT, while broader metals also retreated as the dollar held firm.
The Fed minutes highlighted a largely cautious approach on cutting rates, with most policymakers preferring to wait despite two board members voting for a reduction in July.
Concerns over the inflationary impact of President Trump’s trade tariffs dominated discussions, and policymakers appeared intent on keeping inflation in check rather than risking a cooling in the labour market.
Traders pared back bets on a September rate cut, with Fed fund futures now pricing a 78.4% chance of a 25 basis point reduction, down from nearly 100% earlier in August.
Gold has ranged between $3,220 and $3,450 since May, showing resilience but lacking a decisive catalyst.
Market attention now turns to Fed Chair Jerome Powell’s address at the Jackson Hole Symposium on Friday, which could reignite momentum. Confidence in the Fed’s independence remains a key factor, any perception of undue political influence could further bolster gold’s appeal as a store of value.