Gold prices fell on Wednesday as attention turned to the minutes of the US Federal Reserve meeting, seeking new clues about the direction of monetary policy.
Spot gold fell 0.3% to $4,150.23 an ounce by 0145 GMT. U.S. gold futures also declined 0.2% to $4,177.60.
The minutes of the Federal Open Market Committee's most recent meeting are due to be released later today.
Frank Walbaum, market analyst at Naga.com, said: The yellow metal is likely to remain relatively stable with a slight downward bias.
He added: The minutes of the meeting will clarify the Federal Reserve's monetary policy and the extent to which policymakers support further interest rate hikes, and may reshape expectations regarding anticipated rate increases. Furthermore, any subsequent movements in long-term Treasury yields, the dollar's value, or oil prices—driven by developments in the Middle East—would reinforce this directional effect (on gold).
Recent statements by officials at the US Federal Reserve have confirmed the central bank's commitment to controlling inflation.
Mary Daly, president of the Federal Reserve Bank of San Francisco, said on Tuesday that she believes the need for further rate hikes depends largely on whether the shocks driving inflation up will fade or continue to worsen.
Recent weak economic data has dampened expectations of an October interest rate hike; however, traders still see an 85% probability of an increase in December.
When interest rates rise, investors tend to favor income-generating assets over gold.
Participants at the London Bullion Market Association's annual meeting, held in Sorrento, Italy on Tuesday, predicted that the price of gold would reach $5,013 an ounce within the next 12 months.
U.S. Vice President J.D. Vance said in an exclusive interview with Reuters that Iran must substantially reduce its uranium enrichment capacity to meet U.S. demands and end the more than seven-month-long trade war, even as Washington remains uncertain about how Tehran will make its decisions in the negotiations.
As for other precious metals, silver fell 1% to $61.12 in spot trading, platinum rose 0.2% to $1,704.25, and palladium declined 0.3% to $1,168.20.
