On Wednesday, gold prices dropped from record highs during European trading as investors took profits, while the dollar recovered against major currencies. Markets are now looking forward to the Federal Reserve's latest meeting minutes for more clarity on potential US rate cuts.
Prices
Gold prices decreased by 0.35% today, settling at $2,505 per ounce, after reaching a session-high of $2,519. On Tuesday, prices had risen by 0.4%, marking their third gain in four days and setting a record high of $2,531 per ounce.
The Dollar
On Wednesday, the dollar index increased by 0.2%, maintaining its position above eight-month lows at 101.31 against a basket of major currencies. With inflation slowing and nearing target levels, the Fed is set to begin a new policy easing cycle in the US next month.
US Rate
According to the FedWatch tool, there is a 33% chance of a 0.5% rate cut by the Fed in September, while the probability of a 0.25% rate cut stands at 67%.
Fed's Minutes
Later today, the Federal Reserve will publish the minutes from its July 30-31 policy meeting, during which it kept interest rates steady below 5.5%. At that time, the Fed noted progress in managing inflation, which was approaching 2%. Jerome Powell indicated that the Fed may soon decide to cut interest rates, particularly if inflation continues to decrease.
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