Gold Lower Awaiting FOMC Minutes

Gold slid to its lowest in a week on Wednesday, extending steep overnight losses triggered by a stronger dollar and stock market, with traders now waiting for minutes of the Federal Reserve’s policy meet for clues on the U.S. rate outlook.

Spot gold fell 0.3 percent to $1,204 an ounce by 0643 GMT, after earlier dropping to a one-week low of $1,203.35. The metal lost 1.5 percent on Tuesday, snapping a five-day rally.

Demand for bullion weakened as the dollar climbed to a two-week high against a basket of major currencies, with the euro tumbling on news the European Central Bank was looking to accelerate the pace of money printing to buy government bonds over the next two months.

The greenback was also supported by strong U.S. housing data on Tuesday that stoked hopes the Fed could raise rates soon.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza