By Ishaan Arora
(Reuters) – Gold prices edged lower on Thursday after the U.S. Federal Reserve’s July meeting minutes showed a majority consensus on holding interest rates steady, as investors look to the central bank’s annual Jackson Hole symposium later in the day for further policy cues.
Spot gold was down 0.2% at $3,340.09 per ounce, as of 0802 GMT. U.S. gold futures for December delivery also lost 0.2% to $3,382.30.
Minutes from the Fed’s July meeting showed the policymakers who dissented against last month’s decision to keep interest rates unchanged – Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller – were alone in advocating for a rate cut.
“FOMC minutes were hawkish, the Fed’s board remains inclined to prioritize inflation control by keeping monetary policy tight rather than cutting the cost of money,” said Carlo Alberto De Casa, external analyst at Swissquote.
Non-yielding gold typically performs well in a low interest rate environment.
The Fed has held rates steady since December, although investors still expect an 81% chance of a quarter-point cut by September, according to the CME’s FedWatch tool.
Fed Chair Jerome Powell is expected to speak on Friday at the August 21-23 Jackson Hole symposium, with investors watching whether he backs measures to bolster the labour market or focuses on curbing inflation.
“A hawkish Fed could have an impact on the gold price, but as long as gold remains in the $3,270-3,440 range, there are no massive risks for big falls (given) that central banks are still buying tonnes of gold,” De Casa added.
Meanwhile, President Trump called on Fed Governor Lisa Cook to resign over allegations made by one of his political allies about mortgages she holds, intensifying his efforts to influence the central bank. Cook said she had “no intention of being bullied to step down” from her position.
China’s central bank added gold to its reserves in July, its ninth consecutive month of purchases, official data showed earlier this month.
Spot silver was down 0.2% at $37.83 per ounce, platinum fell 1% to $1,326.93 and palladium shed 0.8% to $1,105.12.
(Reporting by Ishaan Arora in Bengaluru; Editing by Emelia Sithole-Matarise)
