Gold Remains Close to €1500 As All Eyes Are on Fed Minutes.

As investors are waiting for Fed’s July meeting minutes due to be released later today, gold prices are holding close to €1,575 an ounce on Wednesday after profit taking. US President Joe Biden reiterated his call for a large rate cut by Fed while Fed is highly expected to cut the rates by 25 basis point in September. Barclays PLC economists said in a report that Fed would need to cut the rates three times this year due to slowing global economy and stronger dollar.

While gold is holding close to €1,575 an ounce in an environment where central banks are turning dovish, Fed minutes from the last meeting will be under spotlight later today for clues of central bank’s monetary policy outlook.

As of 13:02 GMT+3, spot gold was trading at €1,575.57 an ounce while dollar index remains strong at 98.23, possibly denting demand for gold. US 10-year Treasury yield was slightly up to 1.589.

IG Markets analyst Kyle Rodda said on Reuters that Fed minutes would clarify what to expect in the future while adding Fed President Jerome Powell’s speech in Jackson Hole on Friday would show whether monetary support was to remain.

US President Joe Biden said on Tuesday that he had to confront China on trade even if it caused short-term harm on US economy because China had been cheating Washington for decades. Biden also reiterated his call for a large rate cut by Fed. CME Group FedWatch Tool shows 99.6% change for a 25-basis point rate cut in September.

In the meantime, Barclays PLC economists said in a report that Federal Reserve would need to cut the rates three times this year due to slowing global economy and stronger dollar. The bank stated it expected US economy to grow around 2% while underlining uncertainty, weakness in external demand and worries on trade policy had grown since Fed’s last meeting and that would cause the central bank to cut the rates by 25 basis point.