Gold remains steady as investors await Fed minutes.


FUNDAMENTALS

* Spot gold was flat at $1,775.59 an ounce, 01:19 GMT, after hitting its lowest level since August 8 at $1,770.86 on Tuesday.

* US gold futures were flat at $1,788.80 an ounce.

* The dollar remained stable after hitting a three-week high against its rivals on Tuesday, while benchmark 10-year US Treasury yields rose slightly. [USD/] [US/]

* Market participants are awaiting the minutes of the Fed’s July 26-27 policy meeting, scheduled for 1800 GMT.

* The U.S. central bank has raised its benchmark overnight interest rate by 225 basis points since March to tame high inflation and is expected to raise its key rate by another 50 or 75 basis points in its next meeting on September 20 and 21.

* Although gold is considered a hedge against inflation, rising US interest rates are reducing the attractiveness of non-performing bullion.

* Data on Tuesday showed US home building fell to its lowest level in nearly a year and a half in July, due to rising mortgage rates and building material prices.

* At the same time, output at US factories rose more than expected last month, as output rose at motor vehicle plants and elsewhere, indicating underlying strength in manufacturing despite declining business confidence .

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.18% to 992.20 tonnes on Tuesday from 993.94 tonnes on Monday. [GOL/ETF]

* Spot silver was flat at $20.12 an ounce, platinum was down 0.2% at $933.14 and palladium was up 0.1% at $2,155.19.

DATA/EVENTS (GMT)

0600 UK CPI YY July

0900 EU GDP Flash Estimate QQ, YY Q2

1230 US July MM retail sales

1800 US Federal Open Market Committee Releases Minutes of July 26-27 Meeting



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