Gold closes lower, with an eye on expectations about Fed minutes

Gold ended lower this Tuesday (7) due to the rise in Treasury yields and the dollar after new hostilities in the Strait of Hormuz triggered an increase in oil prices.

The market still operates in light of expectations regarding the minutes of the last decision-making meeting of the Fed (Federal Reserve), which may give indications about the direction of American monetary policy.

On Comex, the metals division of the New York Stock Exchange (Nymex), gold for August closed down 0.24%, at US$ 4,157.4 per troy ounce, while silver for September fell 1.60%, to US$ 61,330 per troy ounce.

The Fed minutes that will be published on Wednesday (8) should be decisive for the short-term behavior of Treasury yields and, consequently, gold, according to Somesh Kapuria, from Hola Prime.

Traders still assign a 59.6% chance of a US interest rate increase in September, according to the CME FedWatch tool.

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Reflecting his individual stance, New York Fed President John Williams said Tuesday he is less concerned about inflation than he was a few weeks ago.

"Inflation is still very high, but I feel a little more positive about the short-term outlook because of the drops in energy prices that we're going to see," he said in an interview with Fox Business. According to him, energy prices are expected to "fall significantly" and this will reduce overall inflation.

Source: CNN