Gold Falls After Fed Minutes Ginted at Stimulus Cut

Gold prices fell today, with the dollar rising to its highest level in months after the minutes of the US Federal Reserve meeting indicated that it will start reducing its pandemic-related stimulus this year.

And gold fell in spot transactions 0.5% to $ 1779.52 an ounce.

US gold futures fell 0.3 percent to $1,779.50.

The dollar index rose to a peak of more than nine months, making gold very expensive for holders of other currencies.

The July meeting minutes showed that US central bank officials see a possibility to reduce the bond-buying program this year if the economy continues to improve as expected.

The precious metal is considered a hedge against inflation and currency devaluation. A tightening of the monetary policy by the US Federal Reserve would address both issues and thus reduce the attractiveness of gold.