Investing.com - Gold futures were lower in North American trade on Wednesday, extending overnight losses as market players awaited the release of minutes from the Federal Reserve’s March policy meeting for fresh clues on the timing of the next U.S. rate hike.
Gold for June delivery on the Comex division of the New York Mercantile Exchange slumped $10.30, or 0.84%, to trade at $1,219.30 a troy ounce by 12:44GMT, or 8:44AM ET. A day earlier, gold rallied $10.30, or 0.84%, as steep declines in global equity markets underpinned demand for assets perceived as safer.
Market players will be focusing on minutes of the Federal Reserve’s March policy meeting due at 18:00GMT, or 2:00PM ET, for some clarity on where the U.S. central bank stands on its path toward rate hikes.
The Fed surprised markets last month by cutting its rate hike projection for this year to two from the four it had previously projected, citing the potential impact from weaker global growth on the U.S. economy.
Traders will also be paying close attention to speeches by Cleveland Fed President Loretta Mester, St. Louis Fed President James Bullard and Dallas Fed President Rob Kaplan later in the day to further judge the balance of opinion among policymakers on the prospect of further rate hikes.
Fed Chair Janet Yellen last week assured markets the central bank would be cautious in raising rates, stating that there are plenty of risks to its forecast.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% at 94.94, boosted by weakness in the euro and British pound.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Prices of the yellow metal are up nearly 14% so far this year as expectations faded that the Fed would move to normalize interest rates due to fears over a China-led global economic slowdown.
Also on the Comex, silver futures for May delivery slumped 14.1 cents, or 0.93%, to trade at $14.97 a troy ounce during morning hours in New York, while copper futures dipped 0.7 cents, or 0.33%, to $2.131 a pound.