Investing.com - Gold prices fell on Thursday after the minutes from the Federal Reserve’s December meeting showed that officials discussed a faster pace of rate increases this year.
Comex gold futures were trading at $1,312.50 a troy ounce by 03:36 AM ET (08:36 AM GMT) after sliding 0.27% the previous day when prices fell back from a three-and-a-half month high of $1,322.70.
Prices of the precious metal were pressured lower after the minutes from the Fed’s December meeting showed that officials discussed whether tax cuts could require them to raise interest rates at a faster pace in 2018 after hiking them three times last year.
Fed officials have penciled in three rate increases this year and two in 2019.
When interest rates rise, gold often struggles to compete against yield-bearing assets like Treasurys.
Recent weakness in the dollar had supported gold prices by making the dollar-denominated metal cheaper for holders of other currencies.
The dollar rebounded on Wednesday, boosted by the minutes and upbeat U.S. manufacturing and construction data, snapping three weeks of losses.
Elsewhere in metals trading, silver was down 0.68% at $17.15 a troy ounce, platinum fell 0.72% to trade at $955.40 a troy ounce and palladium was up 0.6% to $1,089.80 a troy ounce.
Palladium posted the strongest increase among precious metals in 2017, advancing 57% amid concerns over the supply outlook.
Copper was up 0.72% to $3.281 a pound.