Gold Futures Settle Lower As Dollar Rises Ahead Of Fed Minutes

Gold prices drifted lower on Wednesday as the dollar advanced and bond yields rose ahead of the release of the minutes of the Federal Reserve's July meeting.

Gold shed ground amid bets soaring inflation might prompt central banks to be a bit aggressive with regard to their rate hike moves.

The dollar index climbed to 106.89, and despite subsequently falling to around 106.50, rallied again and was hovering around 106.80 a little while ago, gaining about 0.3%.

The minutes from the Federal Reserve's July meeting are awaited for clues on the outlook for interest rates.

Gold futures for December ended lower by $13.00 or about 0.7% at $1,776.70 an ounce.

Silver futures for September ended down by $0.354 at $19.731 an ounce, while Copper futures for September settled at $3.5835 per pound, down $0.0410 from the previous close.

Interest-rate worries have risen after data showed Britain's inflation rate rose to a new 40-year high of 10.1% in July.

The U.K. consumer price index climbed from 9.4% in June to 10.1% in July, raising expectations for a 50 basis-point rate hike by the Bank of England at the meeting in September.

A report from the Commerce Department report showed U.S. retail sales came in flat in July amid pullbacks in gas station and auto sales.

The Commerce Department said retail sales were virtually unchanged in July after climbing by a downwardly revised 0.8% in June. Economists had expected retail sales to inch up by 0.1% compared to the 1% jump originally reported for the previous month.

Excluding gas station and auto sales, retail sales rose by 0.7% in July, matching the increase seen in the previous month.

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