Gold’s further selloff conditioned on FOMC minutes’ signals

Gold is trading at $1776.75 per ounce at the time of writing, but the precious metal’s price is attempting to steady ahead of the FOMC minutes. Gold’s selloff might be overdone as prices are not deteriorating despite a surge in global bond yields. UK inflation hit a 40-year high and US retail sales confirms the economy is still holding up, which could pave the way for more aggressive rate hikes by the US central bank.

Gold is now comfortably below the $1800 level and vulnerable to further selling if investors, traders and market participants become convinced a couple more aggressive rate hikes could be one option to be adopted by the Fed.

Gold will likely trade in a range for the rest of the summer as the Fed will likely maintain a data-dependent stance with the Minutes and at next week’s Jackson Hole Symposium.