Gold slides ahead of U.S Fed minutes

Gold eased on Wednesday, according to Mettis Global, while traders looked ahead to the record of the US Federal Reserve's September policy session. At 10:58 am PST, spot gold stood 0.2% lower at $4,133.8 an ounce. The minutes were due later that day, and market participants hoped they would reveal whether policymakers still favour further rate increases.

Officials at the Fed have taken divergent positions before the publication. San Francisco Fed President Mary Daly argued that any further tightening depends largely on whether inflation drivers ease or stay firm. Kansas City Fed President Jeff Schmid, citing CNBC, contended that borrowing costs must climb further to tame inflation. Softer recent economic readings have cut bets on an October hike, yet traders continue to price in an 85% likelihood of tightening by December.

Higher rates generally draw investors toward income-producing assets, a shift that puts pressure on gold, which pays no interest. Silver dropped roughly 1% to $61.12 an ounce, palladium slipped 0.3% to $1,168.20, and platinum rose 0.2% to $1,704.25.