Gold Hits One-Week Low Following Hawkish Fed Minutes.

Gold prices declined in European trade on Thursday, heading for a third consecutive loss and reaching one-week lows as they dipped below $2400, moving further from a record high due to profit-taking.

The latest Federal Reserve meeting minutes were more hawkish than anticipated, indicating that many officials remain reluctant to consider policy easing measures.

Prices

Gold prices dropped 1% today to $2355 an ounce, with a session high of $2383.

The precious metal fell 1.75% on Wednesday, marking its second consecutive loss and the steepest decline since May 13, driven by profit-taking from a record high of $2450.

Both the dollar and US Treasury yields were boosted today following the release of the Fed’s minutes, which in turn pressured gold prices.

Fed’s Minutes

The minutes revealed that Fed officials are concerned about the appropriate timing for a rate cut, with several members worried about consumers resorting to riskier financing methods to manage costs amid inflation.

Fed officials highlighted the ongoing risks of inflation, citing factors such as geopolitical events, and emphasized the impact on consumers, particularly low-income workers.

In its May meeting, the Fed announced a decision to keep interest rates unchanged at below 5.5%.