Por Sumita Layek
Apr 7 (Reuters) – Gold prices fell on Wednesday as strong US economic data boosted expectations for a recovery in activity and reduced the metal’s appeal as investors waited for minutes to be released this afternoon by the US. Federal Reserve on its March meeting.
* Spot gold was down 0.37% at $ 1,737.41 an ounce at 1105 GMT. Gold futures in the United States were down 0.3% at $ 1,737.70 an ounce.
* Gleaming US economic data is raising fears that the central bank’s monetary policy tightening may come earlier than expected, according to ActivTrades chief analyst Carlo Alberto De Casa.
* There is now a greater perception in the market that accelerating GDP growth and inflation in the United States could force the Fed to abandon its commitment to keep interest rates near zero until 2024.
* Gold, a non-interest-bearing asset, is highly sensitive to rate hikes in the United States as they drive up the cost of holding the bullion for overseas investors and boost the dollar and bond yields.
* Markets are waiting for the release of the minutes of the Fed’s monetary policy meeting on March 16-17. The document will be released at 1800 GMT.
* Among other precious metals, silver fell 0.9% to $ 24.95 an ounce; while palladium fell 1.5% to 2,643.49 dollars an ounce; and platinum was trading steady at $ 1,233.04 an ounce.
(Report by Sumita Layek in Bengaluru. Edited in Spanish by Marion Giraldo)