ISLAMABAD: Gold prices dropped slightly here on Tuesday as investors awaited the release of minutes from the US Federal Reserve’s June meeting, which are expected to provide key clues on future interest rates.
Spot gold fell 0.6 percent to $4,138.32 an ounce, while US gold futures for August delivery fell 0.4 percent to $4,149.90 an ounce.
Gold prices under pressure
According to market analysts, gold prices are currently under pressure due to uncertainty over the Fed’s upcoming policy, with investors keen to know whether the US central bank will raise interest rates in the coming months or maintain its current policy.
Expectations for an interest rate hike have eased somewhat after weak US employment data last week, but the market still sees a 56 percent chance of a rate hike in September.
On the other hand, Hong Kong has also resumed gold futures trading, introducing a new gold clearing system, which aims to strengthen its position as a major trading center for precious metals in Asia.
Experts say that gold prices may see significant fluctuations after the Fed minutes are released, as investors await clear signals regarding upcoming monetary policy.
