Gold prices slip ---

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FE Team | Published: May 22, 2024 22:44:55

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Gold prices slipped on Wednesday as investors strapped in for minutes from the Federal Reserve's most recent policy meeting for further insights on the timeline for interest rate cuts, reports Reuters.
Spot gold eased by 0.3 per cent at $2,413.96 per ounce, as of 1127 GMT. Prices had scaled a record high of $2,449.89 on Monday. US gold futures were down 0.3 per cent at $2,417.60.
"Gold is just consolidating after its big run up. In the short term, it can potentially not go higher without additional support from dollar with focus on the outlook for rate cuts. But, it has been an incredibly strong market and buy on dip mentality is still there," Ole Hansen, head of commodity strategy at Saxo Bank said.
Lately, economic data has pointed towards a downtrend in inflation, but US central bank policymakers said on Tuesday that the Fed should wait several more months to ensure that inflation really is back on track to its 2 per cent target before cutting interest rates.
Bullion is known as an inflation hedge, but the opportunity cost of holding this non-interest-bearing asset increases with higher interest rates.
"If gold is to make another run in the direction of $2,450, moderate resistance at $2,436 will need to be cleared first."
Spot silver fell 0.5 per cent to $31.81 after hitting a more than 11-year high on Monday.
Platinum rose by 0.7 per cent to $1,054.22 and palladium dropped 1 per cent to $1,015.08.