Gold Drops as Dollar Strengthens Before Fed Minutes

Gold fell as the dollar held gains before the release of minutes from the Federal Reserve’s last meeting amid expectations that the central bank will continue to wind back stimulus as the U.S. economy improves.

Bullion for immediate delivery lost as much as 0.4 percent to $1,226.88 an ounce and was at $1,228.14 at 11.44 a.m. in Singapore. Prices dropped 0.5 percent on 6 January, the most since Dec. 30, as the dollar strengthened. Gold for February delivery declined 0.2 percent to $1,227.10 on the Comex in New York.

The Federal Open Market Committee decided at the Dec. 17-18 meeting to cut monthly bond purchases to $75 billion from $85 billion starting this month, and San Francisco Fed President John Williams said yesterday that the program may end this year.

Silver for immediate delivery lost 0.7 percent to $19.7395 an ounce. Prices slumped 1.5 percent on 7 January, the most since Dec. 30. Platinum declined 0.3 percent to $1,411.75 an ounce, while palladium retreated 0.5 percent to $738.45 an ounce.