Gold retreated on Tuesday, trading below the two-week high it reached in the previous session, as markets prepared for the release of June’s Federal Reserve meeting minutes.
Spot gold fell 0.4 per cent to $4,148.59 per ounce by 00:43 GMT, while August US gold futures dropped 0.2 per cent to $4,160.20. The FOMC minutes from the June 16–17 meeting are due Wednesday, with investors hoping they will shed light on the policy direction of new Fed chair Kevin Warsh.
Gold has now fallen more than 25 per cent from the record highs it set earlier this year. The US-Israeli war on Iran stoked inflation concerns, strengthened the dollar, and raised expectations for rate hikes in 2026, all of which weighed on the metal.
Monday’s two-week high came as the US-Iran ceasefire agreement eased some of those inflation fears. Weaker-than-expected US jobs data last week also pushed markets to trim their near-term rate hike expectations. CME Group’s FedWatch tool now puts the probability of a September rate increase at around 57 per cent, down from more than 60 per cent before the data was released.
US services sector activity softened in June as a rush of pre-war orders faded, though employment in the sector recovered after three consecutive months of contraction, pointing to continued labour market stability.
Among other precious metals, silver fell 0.8 per cent to $61.57 per ounce, platinum dropped 0.8 per cent to $1,618.78, and palladium slid 0.4 per cent to $1,264.11.
