Gold Price Holds Steady with Market Focus on Fed Minutes

Gold prices remained steady on Wednesday as investors awaited the minutes of the Federal Reserve’s last policy meeting for new insights on when the U.S. central bank might begin cutting interest rates. Spot gold was nearly unchanged at $2,331.97 per ounce by 0356 GMT. Meanwhile, U.S. gold futures increased by 0.3%, reaching $2,340.20.

Check Live MCX Gold Price

"The gold market has been steady and holding in a narrow range for a few weeks now," said Marex analyst Edward Meir. He added that bullion prices might move higher later this year with all these elections up in the air.

Ahead of the release of the Fed minutes at 1800 GMT, Chair Jerome Powell stated on Tuesday that the United States was back on a "disinflationary path." However, he emphasized that policymakers needed more data before deciding to cut rates, to ensure that the recent weaker inflation readings accurately reflected the state of the economy.

Next on investors’ radar are the ADP employment and weekly jobless claims data scheduled for release later in the day, as well as the nonfarm payrolls report due on Friday. “The NFP release this week could shake things up (for the gold market) if we see a shift in rate-cut expectations,” said Tim Waterer, chief market analyst at KCM Trade.

Also check Gold Rate in India

According to the CME FedWatch Tool, traders see a 67% chance of a Fed rate cut in September. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, making gold a more attractive investment.

“There’s a clear path for gold to outperform from here, likely fueled by Western flows. Conversely, in the event that central bank demand drops drastically, rates remain high for longer and Asian investor sentiment flips, we could see a pullback in the second half,” the World Gold Council said in its mid-year outlook report.

Meanwhile, a private-sector survey revealed that China's services activity grew at its slowest pace in eight months, with confidence reaching a four-month low in June. Among other metals, spot silver increased by 0.3% to $29.60 per ounce, platinum climbed 0.6% to $996.70, and palladium declined 0.5% to $1,016.34.