Gold prices fall on dollar strength

Gold prices slipped on Wednesday, pressured by a firmer dollar as investors look to minutes from the US Federal Reserve's May policy meeting due later in the day for cues on its policy tightening path, reports Reuters.
Spot gold fell 0.6 per cent to $1,855.03 per ounce by 1134 GMT, on track to snap a five-day winning streak. US gold futures dropped 0.6 per cent to $1,853.40.
The dollar was up 0.4 per cent after hitting its lowest level in a month on Tuesday.
"The dollar will probably once again reach toward those maximums that it touched earlier in May because the FOMC minutes will reveal that the Fed is committed to its current hawkish stance and these are bad news for gold," said Ricardo Evangelista, senior analyst at ActivTrades.
The Federal Open Market Committee (FOMC) is expected to release the minutes from its May 3-4 policy meeting at 1800 GMT. While markets expect 50-basis-point rate hikes over the next several months, there are also concerns that the Fed's aggressive policy tightening could weigh on economic recovery.
In an essay published on Tuesday, Atlanta Fed President Raphael Bostic warned that headlong rate hikes could create "significant economic dislocation."
Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion and also boosts the dollar, in which it is priced.