Extends Post-Minutes Dump

Gold is 0.3% lower in the Asia-Pac session, after closing 1.7% lower at $2378.85 on Wednesday following the release of the FOMC Minutes for the May meeting. The yellow metal is now around $80 below the record high reached on Monday.

• Comments from Federal Reserve officials that US interest rates will need to stay higher for longer to combat stubborn inflation weighed on bullion.
• “Participants noted disappointing readings on inflation over the first quarter and indicators pointing to strong economic momentum, and assessed that it would take longer than previously anticipated for them to gain greater confidence that inflation was moving sustainably toward 2%,” the minutes said. Some officials also appeared willing to contemplate interest rate increases if conditions worsen.
• According to MNI’s technicals team, the medium-term outlook for gold remains bullish, with attention on 2452.5 next, a Fibonacci projection. On the downside, the 50-day EMA, at $2293.9, represents a key support.