Gold Price Today: Gold Slips as Dollar Rebounds Ahead of Fed Minutes

Gold prices edged lower on Monday as the U.S. dollar regained ground after last week’s sharp decline, with investors awaiting the Federal Reserve’s June meeting minutes for fresh clues on the outlook for U.S. interest rates.

Spot gold fell 0.5% to $4,154.14 an ounce by 07:43 ET (11:43 GMT), while gold futures gained 1.0% to $4,166.76 an ounce. The decline followed a strong rebound last week, when bullion posted its first weekly gain since mid-May after recovering from eight-month lows.

According to David Morrison, Senior Market Analyst at Trade Nation, the stronger U.S. dollar weighed on gold prices, although it remains uncertain whether the latest pullback will be temporary or signal a broader decline.

Gold rallied more than 2% last week after weaker-than-expected U.S. nonfarm payrolls data reduced expectations that the Federal Reserve would raise interest rates later this year. The softer labor market report prompted traders to reassess the central bank’s policy outlook, offering support to precious metals.

However, uncertainty surrounding U.S. monetary policy remains. Persistent inflation and a resilient labor market continue to complicate the Fed’s decision-making process, with policymakers previously indicating that another rate hike could still be necessary if price pressures remain elevated.

Higher interest rates typically weigh on gold because they increase the opportunity cost of holding non-yielding assets, making interest-bearing investments more attractive. That dynamic has pressured bullion for much of the year, pushing prices well below the record highs reached in January.

The U.S. Dollar Index rose 0.1% on Monday, recovering from a near two-week low while remaining close to its 13-month highs recorded in June. Investors are now focused on the release of the Federal Reserve’s June meeting minutes later this week, which could provide further guidance on future interest rate decisions.

Other precious metals also retreated after posting strong gains last week. Spot silver slipped 1.1% to $61.74 per ounce, while spot platinum eased 0.4% to $1,635.31 per ounce.

Although easing oil prices have helped reduce some inflation concerns, markets remain cautious about persistent price pressures driven by artificial intelligence-related investment and rising global temperatures, factors that could influence the Fed’s policy path in the coming months.