Gold slides to $2,018 as Fed minutes reveal persistent inflation concerns

Gold prices declined 0.8% to $2,018 per ounce, losing $16 as Federal Reserve meeting minutes highlighted ongoing inflation worries and a cautious approach to rate cuts. The minutes revealed several FOMC members expressing concern about sticky core inflation and the need for sustained evidence of disinflation before easing policy. This hawkish tilt strengthened the dollar index by 0.3% to 104.50, creating headwinds for the non-yielding metal. EUR/USD fell 0.2% to 1.0830, while USD/JPY gained 0.3% to 156.95 as higher US rate expectations boosted the greenback. Technical analysis shows gold breaking below the 50-day moving average at $2,025, with next support at $2,000 psychological level. The Fed's emphasis on data dependence suggests continued volatility in precious metals, with upcoming CPI and employment reports likely to drive significant price swings. Traders are reducing long positions ahead of Friday's Non-Farm Payrolls data.