Gold prices fall more than $20 post Fed Reserve meeting minutes

Gold prices fell more than $20 today, Jan. 6, after the Federal Reserve's minutes revealed that officials are discussing accelerating plans to raise interest rates and reduce the balance sheet amid high inflation and a strong economy.

“Participants noted that given their expectations for the economy, labor market and inflation, an interest rate increase may be justified sooner or faster than they previously anticipated,” the meeting minutes stated.

US unemployment data for last week is due later today amid expectations of 199,000, while the monthly jobs report for December is due tomorrow, Jan. 7.

Gold futures contracts for February delivery fell 1.2%, or $22.10, to reach $1,803 per ounce at 10:20am Makkah time, after declining below $1,800 in early trade.

Spot price for the yellow metal fell 1.045% to reach $1,802.25 per ounce.

Elsewhere, silver futures for March delivery fell 2.4% to reach $22.61 an ounce. Spot price for platinum delivery fell 1% to reach $976.66, while palladium declined 2.58% to reach $1,853.50 per ounce.

The main dollar index, which measures the performance of the US currency against a basket of six currencies, rose 0.18% to reach 96.344 points.