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Gold Slips Ahead Of Powell Testimony, FOMC Minutes

Gold prices slipped in cautious trade on Wednesday as investors awaited more clues on the U.S. monetary policy outlook.

Spot gold slid 0.2 percent to $1,395.17 per ounce, while U.S. gold futures were down 0.25 percent at $1,397.10 an ounce.

Fed Chair Jerome Powell's testimony later today is being closely watched for clues about whether the U.S. central bank will meet dovish expectations in light of strong U.S. jobs data released last week.

He will testify before the Senate Banking Committee on Thursday. The Fed releases minutes of the central bank's June 18-19 policy meeting later today.

The Fed last month removed a reference to being "patient" about interest rates from its post-meeting statement, helping raise expectations of a 50 basis point (bps) rate cut at a Fed meeting later this month.

Those hopes have now evaporated after the release of strong jobs data.

U.S-China trade talks also remain in focus. The two sides held a "constructive" phone conversation on Tuesday but there are no miracles here, White House economic adviser Larry Kudlow told reporters.

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