Gold ends in red for 2nd straight session

Gold alloys

Gold prices widened their losses at the close today, May 22, as investors awaited the release of minutes from the Federal Reserve’s latest policy meeting, seeking more clues about the timing of potential US interest rate cuts.

Bullion for June delivery plunged by 1.35%, or $33, to finish at $2,392.90 an ounce, after touching $2,385.30 per ounce in early trading.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, expanded 0.1% to 104.77 points at 08:34 pm Makkah time.

“Anytime you have a rally as long and as dramatic as gold, naturally you can see some profit taking,” said Everett Millman, chief market analyst with Gainesville Coins, adding that he projects the yellow metal to consolidate and retest the $2,300/ounce level.

The CMA FedWatch Tool showed that the chances that the Fed would fix borrowing costs in the June and July meetings stand at 96.2% and 78.3%, respectively. Investors are leaning towards a 25-basis-point rate cut at the September meeting, albeit at a lower possibility of 50.9%, from 53.5% a week ago.