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Gold Prices Slip; Dollar Firms as FOMC Meeting Minutes Point to More Rate Hikes

Published 10/18/2018, 01:30 AM
© Reuters.  Gold prices slipped while the dollar gained on Thursday
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Investing.com - Gold prices slipped while the dollar gained on Thursday after the minutes from the latest Federal Open Market Committee meeting reinforced expectations for tighter U.S monetary policy.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange slipped 0.08% to $1,226.4 a troy ounce by 1:19 AM ET (05:19 GMT).

"Gold is closely tracking both the U.S. dollar and equities, more so the dollar," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.06% to 95.41 on Thursday and hit a fresh one-week high.

"The USD has been making up some lost ground in the past 24 hours or so. It seems to have been more market related rather than US data (only housing starts were released overnight and they were likely hurricane affected), while the FOMC Minutes this morning also have not shifted the dial too much," David de Garis, a director and senior economist at National Australia Bank, said in a morning note.

Recent geopolitical events and macroeconomic factors including the U.S.-China trade war concerns and tension over the disappearance of a prominent Saudi Journalist were cited as tailwind for the precious metal earlier this month.

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