Gold resumes losses with Fed meeting minutes in focus

Gold fell as the European market opened today, to resume its downtrend which was temporarily halted yesterday, and heads for surrendering the $1,50 barrier, due to lower haven demand and ahead of the US Federal Reserve meeting minutes release, which is expected to include strong signes on the future of the US rate cuts.

As of 10:55 GMT, gold fell more than 0.4% to $1,501.42 an ounce from the opening of $1,507.65, with a high of of $ 1,508.03, and a low of $1,496.51.

Gold closed yesterday higher by 0.75%, its first gain in three days, as US dollar fell against a basket of global currencies.

Gold is currently facing pressure from the dollar's rise against a basket of currencies, in addition to lower haven demand levels after the US-China trade war fears eased.

During its latest meeting in July 30-31, the US Fed cut rates by 25 basis points to 2.25%, as the bank stated that the cut came to support the economy's growth and to counter weak inflation signs due to trade protectionism.

While some experts believe that the move is unjustified as the US economy performs better than expected despite the rising risks, and may be a way to please President Donald Trump, who is critical of US monetary policy and high interest rates.

Fed chairman, Jerome Powell, said that the current cut will not be the beginning of a series of interest rate cuts, and after the meeting ended, the market's bets for another US rate cut eased.

Investors are anticipation today the release of the Fed meeting minutes by 18:00 GMT, which is expected to include strong signes on the future of the US interest rate cuts.

Gold holdings at the SPDR Gold Trust, rose by 1.76 metric tons yesterday, to a total of 845.17 metric tons.