WASHINGTON (dpa-AFX) - Gold prices traded lower on Thursday as investors reacted to hawkish Fed minutes and watched the latest developments on Ukraine peace talks.
The dollar was slightly higher, making bullion more expensive for overseas buyers. Spot gold dipped 0.3 percent to $3,339.19 per ounce in European trade while U.S. gold futures were down 0.2 percent at $3,382.47.
The U.S. dollar edged up after minutes of the July Fed meeting suggested divisions over inflation.
According to the Fed minutes, attendees of the late July meeting found that risks surrounding U.S. inflation outweighed those to employment, underscoring a central bank divide over the effects of President Trump's tariffs.
Meanwhile, after President Donald Trump called for Fed governor Lisa Cook to resign over mortgage allegations, Cook said she has no intention of being bullied to step down from her position because of some questions raised in a tweet.
Investors now await Jerome Powell's eighth and final keynote Jackson Hole speech as Federal Reserve Chair on Friday for clarity on the outlook for interest rates ahead of the Fed's next monetary policy meeting in September.
CME Group's FedWatch Tool currently indicates an 82.9 percent chance the Fed will lower rates by a quarter point next month.
On the geopolitical front, media reports suggest that U.S. President Donald Trump is urging EU allies to send ground troops to Ukraine to secure a ceasefire and guarantee security there.
Trump has categorically ruled out the deployment of U.S. troops on the ground in Ukraine but seems ready to provide air support.
'Germany's contribution to security guarantees has not yet been determined and this issue will be decided at the political and military levels,' German Defense Minister Boris Pistorius said on Tuesday, adding that there were still too many uncertainties, for example, regarding further negotiations as well as the contribution of the U.S. and other allies.
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