Gold Trades Flat As Investors Weigh Fed’s June Meet

Gold futures closed flat in the domestic market on Wednesday as prices struggled for direction as investors weighed the release of minutes from the U.S. Federal Reserve’s June meeting. The Fed minutes were anticlimactic, revealing little that the investing public didn’t already assume

The summary of the central bank’s last meeting suggests that it could trigger a long-awaited move to reduce its massive $4.5 trillion in debt holdings by September. Balance-sheet reductions can have the effect of an added tightening to interest rates, because it theoretically removes a big Treasury buyer from the market, pushing bond prices lower and yields higher.

Gold investors, however, will likely look to further comments from Fed officials due to speak later this week, including Fed Vice Chair Stanley Fischer on Thursday, for hints on the timing of interest-rate hikes.

At the MCX, gold futures for August 2017 contract ended at Rs 28114 per 10 grams, down by 0.00 per cent, after opening at Rs 28,170 against a previous close of Rs 28,115. It touched the intra-day low of Rs 28,005.

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Suhani Verma

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