By Gina Lee
Investing.com – Gold was down on Thursday morning in Asia, slipping below the $2,000-mark over a slowly strengthening dollar.
Investors retreated from the yellow metal as the greenback inched upwards on Thursday, and U.S Treasury yields rose after minutes released by the U.S. Federal Reserve on Wednesday put paid to the implementation of yield curve controls to keep the cost of borrowing low.
Gold futures were down 0.54% at $1959.70 by 12:30 AM ET (5:30 AM GMT).
The Fed’s minutes, from its last policy meeting, also warned that the path to economic recovery from COVID-19 remains highly uncertain. They also said that the Fed could tweak monetary policy to continue aggressive stimulus measures for much longer than previously forecast amid the uncertainty.
Investors are looking to the Jackson Hole symposium, taking place from August 27-28, and the Fed’s next policy meeting in September, for more guidance.
Meanwhile, mounting U.S.-China tensions could turn investors back to the safe-haven asset. In the latest move, the U.S. on Wednesday suspended its extradition treaty and reciprocal tax treatment on shipping with Hong Kong over China’s imposition of national security laws in the city.