Gold Finishes Lower but Bounces Following Fed Minutes

Gold prices closed lower on Wednesday, as the U.S. Dollar (USD) continued its rally against major peers, but rebounded following the release of the Federal Reserve July meeting minutes

Talks about plans for monetary policy normalization soon, beginning with limiting the asset purchases before increasing interest rate, are providing support for the yellow metal, with a lower money supply usually resulting from scaling back the easing policies.

Gold futures for December delivery declined $3.40, or 0.2%, to close at $1,784.40 per ounce.

This is the second consecutive daily loss for the yellow metal’s most-active contracts, which rose on Monday to their highest levels in about two weeks and its lowest closing level since August 9.

Spot gold is currently trading higher by $1.3, or 0.07%, at 1,787.47 an ounce.