Gold declined in Asian trade as market participants turned their attention to the minutes of the Fed’s July meeting, released Wednesday. The minutes suggest broader support for interest‑rate hikes, with more officials favoring increases than the three who formally dissented. Several officials also signaled that they would back a rate rise if inflation does not improve.

A higher‑rate environment typically weighs on non‑yielding assets such as gold, which explains the recent weakness. Despite the hawkish tone, ING economist James Knightley believes the Fed will keep rates on hold well into 2027. He notes that officials who voted against hikes would need stronger U.S. jobs data and higher inflation before changing course, data he does not expect to materialize.

Spot gold fell 0.6% to $4,494.52 a troy ounce, reflecting the market’s sensitivity to the Fed’s stance.

The minutes underscore the Fed’s cautious approach, with officials weighing the balance between tightening policy and supporting the economy. Traders will monitor upcoming data releases for signs of inflationary pressure that could shift the Fed’s stance.