Precious-Gold dropped for a second straight session on Wednesday after facing some profit taking, ahead of Fed minutes which may show policymakers were in favor of further stimulus reduction.
The metal fell from 3-1/2 month high on Tuesday as the recent rally has encouraged some profit taking by investors.
Following last year’s 28 percent drop, the gold has recovered some of the losses on weaker-than-expected recovery pace by the United States and emerging markets rout.
Later in the day, eyes will focus on Fed minutes of its January meeting where it may show the backing of policymakers to the continuation of bond purchases cut.
Fed Chairman Janet Yellen said recovery in the labor market is incomplete, she stressed that stimulus would be cut in “measured steps.”
Investors will remain alert to U.S. fundamentals, as it would determine the speed of stimulus cut.
Housing starts probably dropped to 950,000 in January from 999,000 in December, according to median forecasts for today’s report.
In fact, the cold weather was accused for the recent stall in recovery and therefore the upcoming data may show the continuation of progress, thereby damping haven demand on the yellow metal.
Meanwhile, the yellow metal is trading around $1318.00 an ounce after hitting a high of $1322.51 and a low of $1314.43.
The U.S. dollar slipped against a basket of major currencies to hover around79.96 after hitting a high of 80.02, according to the dollar index.
Crude oil for April’s delivery retreated to trade around $102.13 a barrel after setting a high of $102.55.