(Kitco News) Gold prices are struggling with another setback following the release of the FOMC meeting minutes from July, says Commerzbank. “The gold price came under considerable pressure yesterday afternoon. By evening, the price had fallen by around $70 to $1,925 per troy ounce, meaning that it had shed all of its gains since the beginning of the week again,” writes Commerzbank analyst Carsten Fritsch. “At least half of the downturn … in gold was attributable to the evening publication of the minutes of the FOMC meeting on 29 July. They contained no indication of any imminent yield curve control. This is likely to have prompted some market participants who had been betting on this happening to square their positions.” In response, the U.S. dollar began to rise, weighing on gold. On top of that, some Fed officials are starting to sound more optimistic, which is adding downward pressure. “St. Louis Fed President Bullard made significantly more optimistic remarks about the economic outlook in the second half of the year yesterday. Considered a particularly dovish member of the FOMC, Bullard’s comments carry all the more weight,” adds Fritsch.
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