Gold inches lower, investors wait for Fed’s June meeting minutes

Gold prices dipped slightly in early Asian trade as traders awaited the minutes of the U.S. Federal Reserve’s June meeting for clues on future interest rate hikes. The dollar index remained steady, and trading volume was expected to be light due to a U.S. holiday. U.S. manufacturing continued to decline in June, but price pressures at the factory gate eased as supply chain bottlenecks improved and borrowing costs dampened demand. Investors are anticipating a 25-basis-point rate hike in July, with rates reaching 5.25%-5.50% before potential cuts in 2024. High interest rates discourage investment in non-yielding gold.