Gold prices fell today during Tuesday’s trading, after the precious metal hit its highest level in nearly two weeks during the previous session. Investors watched closely as Gold Price Today showed renewed volatility in the market.
Investors await the release of the minutes of the US Federal Reserve’s meeting, looking for new clues about the future of monetary policy and the direction of interest rates.
Spot gold fell 0.4 percent to $4,148.59 an ounce.
U.S. gold futures for August delivery fell 0.2 percent to $4,160.20 an ounce.
On Wednesday, the Federal Reserve is expected to publish the minutes of its June 16-17 Open Market Committee meeting.
Investors are waiting for any signals that may clarify the direction of monetary policy in the coming months.
On the other hand, the US economic data showed a decline in the activity of the services sector during June, after the impact of the exceptional demand witnessed by companies in the past period declined.
Still, employment has rebounded after three months of contraction, reflecting the continued strength of the U.S. labor market.
Gold has lost more than 25 percent of its value compared to its highs recorded earlier in the year.
This came as a result of the rise in the dollar and the increase in expectations of interest rate hikes, in light of the geopolitical tensions witnessed in the region.
However, the yellow metal has received support in recent days.
The U.S.-Iran ceasefire deal, coupled with weaker-than-expected U.S. jobs data, helped calm inflation concerns.
This has boosted the demand for gold as a safe haven.
Market estimates indicate that there is a 57 percent probability of a rate hike in September.
This is lower than previous forecasts.
Other precious metals such as silver, platinum and palladium also declined.
Amid a state of caution that dominates global markets ahead of the release of the expected data.
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