Gold extended its losses since the opening of the week to hit a low below $3,300 as market participants digested the latest Federal Reserve (Fed) minutes.
At 9.15am, gold was at $3,251.68, down 1.09% since it opened in early trading on Thursday in the Asian session.
In early May, the Fed decided to keep rates unchanged citing uncertainty about the impact of tariffs on the economy.
Fed officials adopted a cautious approach due to the increased risk of high inflation and unemployment, driven by the potential impact of tariffs.
The policymaking group acknowledged inflation risks while saying that the committee may face difficulty in determining its next steps while watching the growth outlook and employment data.
For now, the Fed's more cautious stance on monetary policy awaits the economic impact of more pronounced changes in government policies.
The gold rally appears to have stalled since the opening of the week as US Treasury yields recovered their position last week, which continued to support the US dollar. However, the dovish tone that emerged in the minutes of the previous meeting remained, driving gold to hold on to its highs.
In addition, the yellow metal price remains in positive territory due to the escalating geopolitical tensions between Russia-Ukraine and the Middle East involving Israel-Hamas.
Heading into the week, market attention is focused on the second estimate of Gross Domestic Product (GDP) for the first quarter of 2025, as well as the Fed's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.
