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2024.02.2117:58:00UTC+00Gold Futures Settle Lower Ahead Of Fed Minutes

Gold futures settled lower on Wednesday as the dollar swung between gains and losses ahead of the release of the minutes of the Federal Reserve's monetary policy meeting.

The minutes might offer additional clues on when the U.S. central bank will start to cut interest rates.

The dollar index, which climbed to 104.21 in the European session, dropped to around 103.80 around late morning before recovering to 104.06, down marginally from the previous close.

Gold found some safe-haven support due to escalating tensions in the Middle East, but failed to sustain at higher levels.

Gold futures for April ended lower by $5.50 at $2,034.30 an ounce.

Silver futures for March ended down $0.262 at $22.874 an ounce, while Copper futures for March settled at $3.8750 per pound, gaining $0.0075.

CME Group's FedWatch Tool currently indicates just an 8.5% chance the Federal Reserve will lower rates by a quarter point in March, while the chances of a quarter point rate cut in early May have fallen to 33.8%.

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