Gold prices slip on hawkish Fed meeting

Gold prices extended their slide in Asian trading on Wednesday, weighed down by anticipation of a hawkish stance from the Federal Reserve later in the day, as reported by Investing.com financial platform.

Spot gold dipped 0.1 per cent to $2,285.19 per ounce, while June gold futures slipped 0.3 per cent to $2,295.25. Prices fell below the key $2,300 level on Tuesday, opening the door for further declines.

The yellow metal, which hit record highs in April, has lost momentum as safe-haven demand waned with some easing of geopolitical tensions.

This has left it vulnerable to rising interest rates, which reduce the appeal of holding non-yielding assets like gold.

Other precious metals mirrored gold’s decline on Wednesday, with a stronger dollar adding additional pressure. Platinum futures dipped 0.2 per cent, while silver futures edged down 0.2 per cent.

Copper prices are still up 14-16 per cent for the month, but worries about slowing economic growth due to potentially prolonged high interest rates could dampen the metal’s near-term outlook.