July 8, 2021

This is the GOLD Reaction Following the Minutes of the FOMC Meeting!

 Gold traded steady on Thursday as a slump in U.S. treasury yields supported the precious metal from declining lower against the strong U.S. dollar.

Spot gold traded little changed in the Asian session, recording a decline around $ 1,798 an ounce.

The greenback strengthened to a 3 -month high against its major rivals although 10 -year U.S. bond yields continued to be at their lowest level since February at around 1.30% in the Asian session.

Gold prices were seen as less affected following the publication of a report on the minutes of the FOMC meeting in the previous session, which showed policymakers debating when easing in monetary policy would be reduced.

FOMC minutes say that the process of reopening the economy is uneven and inflation risks tend to increase. However, recent inflationary pressures are seen to be heavily linked to supply disruptions but they will decline again.

Overall, the Federal Reserve (Fed) will further assess progress in economic recovery in the future and feels greater progress in economic recovery in general is seen as unfulfilled.