Gold steady above $2,500 as Fed minutes signal possible rate cuts

• Gold remains stable at around $2,500 after FOMC minutes suggest potential easing if economic data aligns.
• Fed officials express growing confidence in inflation control, eyeing a 25 bps cut at the next meeting.
• US Dollar weakens, DXY down 0.30%, with 10-year Treasury yields falling to 3.769%, supporting gold prices.

Gold price remains steady at around $2,500 after the Federal Reserve revealed its latest meeting monetary policy minutes, which hinted the US central bank could cut interest rates. At the time of writing, XAU/USD has trimmed its earlier losses, and its virtually unchanged.

XAU/USD holds firm as FOMC hints at rate cuts, trimming earlier losses

The Federal Open Market Committee (FOMC) minutes showed that most participants said, “it would likely be appropriate to ease policy at the next meeting if data continued to come in as expected.” Furthermore, the minutes added that the recent progress on inflation and the increase in the unemployment rate warranted a 25-basis point (bps) rate cut at the July meeting.

The minutes showed that officials are gaining confidence that inflation is moving toward the 2% goal and that risks to the employment goal have increased.

The golden metal reacted upwards on the release, while the Greenback’s sustaind losses of over 0.30%, as the US Dollar Index (DXY) sits at 100.99. In the meantime, US Treasury bond yields are falling, with the US 10-year Treasury note yield down four basis points to 3.769%.