Gold prices fall on expectations around Fed’s policy

Gold prices fell on July 3 morning, Report informs referring to the auction data.

Traders are evaluating the prospects for the US Federal Reserve System (FRS) rate policy.

The price of August gold futures on the New York Comex exchange fell by $5.8 (0.3%) to $1,923.6 per troy ounce. September silver futures rose 0.2% to $23.067 an ounce.

On July 5, the minutes of the June meeting of the Fed will be published, which may contain clues about the regulator’s future plans for the rate.

Following the meeting last month, the central bank kept the base interest rate at the level of 5-5.25% per annum. According to CME Group, 87.4% of analysts are considering a 25-basis point rate hike this month. The meeting is scheduled for July 25-26.

Gold is sensitive to the Fed’s monetary policy, as it affects the value of the dollar, on which the precious metal’s quotes depend. Traditionally, monetary tightening has supported the dollar, making gold less available to buy in another currency.