The price of gold has fallen slightly as the minutes of the FOMC meeting had a more hawkish tone. Price activity in the US Dollar could provide some support and assist limit additional losses.Bulls should be cautious if they repeatedly fail to find acceptance above the $2,000 barrier.
The gold price (XAU/USD) extends the overnight moderate drop from the $2,007 range, or around a multi-month high, and remains below the $2,000 psychological level through the Asian session on Wednesday. The minutes of the Federal Reserve’s most recent policy meeting, conducted on October 31-November 1, struck a hawkish tone, revealing that officials are still committed to tightening policy further if progress in managing inflation stalls. This is seen as a major element directing flows away from the non-yielding yellow metal.