Editor’s Note
Gold prices fell sharply on Wednesday, driven by a stronger dollar and easing geopolitical concerns. Investors are now focused on the upcoming release of the Federal Reserve’s January meeting minutes for further signals on the path of U.S. interest rates.
Gold prices fell more than 2% in the precious metals market on the 17th. The decline was driven by easing geopolitical tensions involving Iran and Russia, a stronger U.S. dollar, as investors awaited the release of the Federal Open Market Committee (FOMC) minutes from January, scheduled for the 18th.
Spot gold hit a low of $4,862 per ounce, its lowest level in over a week. As of 0622 GMT (3:22 PM Japan time), it was down 1.9% at $4,898.53. U.S. gold futures for April delivery fell 2.6% to $4,917.70.
said Kyle Rodda, Senior Market Analyst at Capital.com.
Ilya Spivak, Head of Global Macro at Tastylive, noted,
He added that aside from the FOMC minutes, information hinting at the Federal Reserve’s thinking would be closely watched.
U.S. President Trump revealed on the 16th that he would be “indirectly” involved in the Iran-U.S. talks on nuclear issues scheduled to begin on the 17th in Geneva, Switzerland, expressing confidence that Iran desires an agreement.
Furthermore, Ukraine and Russia are set to hold a third round of U.S.-mediated peace talks in Geneva, Switzerland, on the 17th-18th. The Russian presidential office stated that this round of talks would likely focus on the key contentious issue of territory.
The U.S. Dollar Index (.DXY) rose 0.2%. Spivak predicted,
Spot silver fell over 5% at one point before trading 2.8% lower at $74.46.