Gold heads south in Asia ahead of Fed minutes

Gold heads south in Asia ahead of Fed minutes

On Wednesday, gold slumped because market participants geared for Fed gathering later in the day for more fresh clues on the rate path next year.

December delivery gold futures dived 0.14% in New York being worth 1,279.89 a troy ounce.

Overnight, gold rallied after the US currency went down amid weakness in long-term US yields ahead of the publication of the Fed’s October gathering minutes slated for Wednesday.

Long-term treasury yields were still suppressed, thus putting pressure on the evergreen buck, while spurring demand for gold because market participants waited for the minutes of the Fed October gathering for fresh clues on future monetary policy action.

The overall prospect of a December rate lift happens to be fully priced in, as investing.com’s fed rate monitor tool states.

Traditionally, the number one precious metal is very sensitive to moves lower in the greenback. It’s because a weaker US currency makes gold more affordable for holders of foreign currency.

 

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