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Fed minutes show nearly all members prefer leaving rates
unchanged
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Trump calls on Fed Governor Cook to resign over mortgage
allegations
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Fed's Jackson Hole symposium in Wyoming begins today
(Updates for EMEA morning session)
By Ishaan Arora
Aug 21 (Reuters) - Gold prices edged lower on Thursday
after the U.S. Federal Reserve's July meeting minutes showed a
majority consensus on holding interest rates steady, as
investors look to the central bank's annual Jackson Hole
symposium later in the day for further policy cues.
Spot gold was down 0.2% at $3,340.09 per ounce, as of
0802 GMT. U.S. gold futures for December delivery also
lost 0.2% to $3,382.30.
Minutes from the Fed's July meeting showed the policymakers
who dissented against last month's decision to keep interest
rates unchanged - Vice Chair for Supervision Michelle Bowman and
Governor Christopher Waller - were alone in advocating for a
rate cut.
"FOMC minutes were hawkish, the Fed's board remains inclined
to prioritize inflation control by keeping monetary policy tight
rather than cutting the cost of money," said Carlo Alberto De
Casa, external analyst at Swissquote.
Non-yielding gold typically performs well in a low interest
rate environment.
The Fed has held rates steady since December, although
investors still expect an 81% chance of a quarter-point cut by
September, according to the CME's FedWatch tool.
Fed Chair Jerome Powell is expected to speak on Friday at
the August 21-23 Jackson Hole symposium, with investors watching
whether he backs measures to bolster the labour market or
focuses on curbing inflation.
"A hawkish Fed could have an impact on the gold price, but
as long as gold remains in the $3,270-3,440 range, there are no
massive risks for big falls (given) that central banks are still
buying tonnes of gold," De Casa added.
Meanwhile, President Trump called on Fed Governor Lisa Cook
to resign over allegations made by one of his political allies
about mortgages she holds, intensifying his efforts to influence
the central bank. Cook said she had "no intention of being
bullied to step down" from her position.
China's central bank added gold to its reserves in July, its
ninth consecutive month of purchases, official data showed
earlier this month.
Spot silver was down 0.2% at $37.83 per ounce,
platinum fell 1% to $1,326.93 and palladium shed
0.8% to $1,105.12.
(Reporting by Ishaan Arora in Bengaluru; Editing by Emelia
Sithole-Matarise)