Gold prices fell in early European trading, extending the consolidation phase that began during the previous session. After the constructive tone observed at the end of last week, the precious metal is now consolidating ahead of the release of the latest FOMC minutes, which are expected to provide further insight into US policymakers’ views on inflation, labour market conditions, and the extent of divergence within the committee under the new leadership of Kevin Warsh. In the meantime, a flare-up in hostilities in the Persian Gulf, after Iran reportedly attacked ships near the Strait of Hormuz, has revived inflation concerns and provided support to the US dollar. The greenback had weakened against other major currencies following last week’s disappointing jobs report, but its recent gains are now creating a headwind for bullion.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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