World gold fell after the minutes of the Fed meeting

World gold fell after the minutes of the Fed meeting

 World gold fell after the minutes of the Fed meeting

Gold prices fell on Thursday (May 26), with some investors pulling out of the market after the minutes of the US Federal Reserve's policy meeting showed the central bank is likely to continue to raise interest rates.

At the end of Thursday's session, the spot gold contract fell 0.1% to $1,851.57 an ounce. Gold futures added 0.2% to $1,849.8 an ounce.

The Fed's commitment to raise rates has weighed on gold a bit, with some profits booked on the news, and gold prices likely to fall to $1,820 an ounce or more.

Gold eased some of the downside for a strong dollar on Wednesday (May 25) after notes from the Fed's May meeting suggested the agency would not be more aggressive and would raise interest rates again. 50 basis points in June and July to deal with inflation.

However, in the long term, investors who know that a recession is looming should look for something of high value that can help them get through this period.

Short-term increases in US interest rates and bond yields have increased the opportunity cost of holding gold, which does not yield a yield. However, gold is seen as a safe haven during financial crises.

SPDR Gold Trust (NYSE:GLD), the world's largest gold-backed ETF, said its gold holdings increased from 1,068.07 tons in the previous session up 0.2% to 1,069.81 tons on Wednesday (May 25).

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