Gold prices fall after publication of minutes of Fed’s meeting

Gold prices showed a decrease on July 6 morning after the release of the minutes of the June meeting of the US Federal Reserve System (FRS) on July 5, Report informs referring to the auction data.

The price of August futures for gold on the New York Comex exchange fell by $3.55 (0.18%) to $1,923.55 per troy ounce. September silver futures fell 0.38% to $23.312 an ounce.

Markets are paying attention to the minutes of the meeting of the Fed, it supported the expectations of further increases. According to the document, the regulator considers it expedient to further increase the discount rate in 2023 against the backdrop of high inflation. At the same time, the participants of the meeting considered it appropriate to further slow down the increases in order to assess the consequences of the cumulative tightening of the policy.

According to the CME Group, 88.7% of analysts are considering a 25-basis point Fed rate hike in July from the current 5-5.25%.

Gold is sensitive to the Fed’s monetary policy, as it affects the dollar. Traditionally, monetary tightening has supported the dollar, making gold less available to buy in another currency.