Gold takes a breather after record run as investors prepare for Fed minutes

Gold The US stock index took a breather on Wednesday after hitting a record high in the previous session. Optimism over rate cutsas investors expected minutes of the Federal ReserveLast meeting and presidency of Jerome Powell Speech to clarify the depth of the cuts.

BASICS

* Spot gold was steady at $2,514.79 an ounce by 0105 GMT, trading below a record high of $2,531.60 hit on Tuesday.

* U.S. gold futures also held steady at $2,553.

* Geopolitical tensions and the uncertainty created by the upcoming US presidential election and the outlook interest rate The cuts appear set to help push gold prices to even higher levels.

* Traders have already priced in Fed easing at the September meeting, with a 68% chance of a 25 basis point cut, according to CME’s FedWatch tool. Gold, a non-interest bearing asset, tends to thrive in a low interest rate environment.

* He US Dollar hit a seven-month low, while benchmark 10-year Treasury yields also sank, making non-yielding bullion less expensive for holders of other currencies.

* The market now awaits minutes from the Fed’s July monetary policy meeting, due later in the day, and Powell’s speech on the US economic outlook on Friday at the Jackson Hole symposium.

* Meanwhile, US Secretary of State Antony Blinken left the Middle East on Tuesday without an agreement being reached between Israel and Hamas.

* SPDR Gold TrustThe world’s largest gold-backed exchange-traded fund said its holdings fell 0.20% on Tuesday.

* Swiss gold exports rose in July to the highest level since April as higher supplies to India and Britain offset lower shipments to China, customs data from the world’s largest bullion transit and refining hub showed.

* Spot silver rose 0.1% to $29.45 an ounce, platinum gained 0.5% to $950.80 and palladium added 0.2% to $927.65.