Gold prices dropped to around $2,370 per ounce on Thursday, extending its decline, after investors pulled back their expectations of rate cuts amid hawkish tones from the Federal Reserve.
Minutes from the latest Fed meeting showed that policymakers generally felt that it would take longer than previously anticipated to gain greater confidence that inflation is moving towards 2%.
This was broadly consistent with the recent comments from several Fed officials advocating policy caution despite recent data suggesting an easing of US inflation.
Higher rates decrease the appeal of gold, yet increasing price pressures boost its attractiveness as a hedge against inflation.
Minutes from the latest Fed meeting showed that policymakers generally felt that it would take longer than previously anticipated to gain greater confidence that inflation is moving towards 2%.
This was broadly consistent with the recent comments from several Fed officials advocating policy caution despite recent data suggesting an easing of US inflation.
Higher rates decrease the appeal of gold, yet increasing price pressures boost its attractiveness as a hedge against inflation.