Gold prices sink with focus still on Fed

Gold prices contracted at settlement today, Aug. 16, amid market anticipation for the release of the minutes of the Federal Reserve’s August meeting later in the day, looking for clues about the future of interest rates.

Bullion for August delivery plummeted by 0.35%, or $6.90, to end at $1,928.30 an ounce.

Expectations indicate a growing possibility of the Fed maintaining its tightening policy, after the recent economic readings. US retail sales rose last month at the highest pace since January, eliminating fears of an economic recession in the coming period.

Overall US single-family housing starts increased by 3.9% to a rate of 1.45 million units in July, while overall building permits edged up 0.1% to 1.44 million units during the same month, despite the renewed significant uptick in mortgage rates.

On Aug. 16, the Fed unveiled that the US industrial production in July advanced by 1% on a monthly basis, exceeding market estimates, suggesting softer price pressures on productive sectors.