03.01.202409:09:00UTC+00Gold Slips As Dollar Gains Ahead Of FOMC Minutes

Gold prices traded lower on Wednesday as the dollar clung to previous day's gains ahead of key U.S. labor market data and the release of FOMC meeting minutes this week, which could impact the outlook for interest rates.

Spot gold slipped 0.1 percent to $2,056.84 per ounce while U.S. gold futures were down 0.4 percent, at $2,065.20.

Risk-off mood prevailed in financial markets as doubts emerged over just when the Fed plan to begin trimming rates in 2024.

Bonds worldwide slumped Tuesday, with Treasury yields rising across the curve, amid doubts over early rate cuts by the U.S. Federal Reserve and other top central banks.

Trading later in the day may be impacted by reaction to U.S. reports on manufacturing activity and job openings as well as the release of minutes of the Federal Reserve's latest monetary policy meeting, which could impact the outlook for interest rates.

A private payrolls report, jobless claims figures and the closely watched U.S. nonfarm payrolls report due later this week may offer additional clarity on whether the U.S. central bank will give up its fight against inflation too soon.

Currently, markets are betting on up to six rate cuts in 2024.