Gold prices ends in red ahead of Fed meeting minutes

Gold prices dropped at settlement today, Feb. 21, as investors looked to the minutes of the Federal Reserve’s latest policy meeting for cues on the timing of interest rate cuts.

Bullion for April delivery shed 0.25%, or $5.50, to finish at $2,034.30 per ounce, following an earlier rise to $2,043.50 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, stabilized at 104.08 points at 09:24 pm Makkah time.

Speaking with Bloomberg TV, Wells Fargo Strategist Erik Nelson estimated that the Fed could cut interest rates 100-125 basis points (bps) over the next nine months, reflecting a quicker pace of easing than what investors or central bankers have suggested this year.

Markets are pricing in a 34% chance that rates could but cut by 100 basis points by the end of the year, according to the CME FedWatch tool, while Fed officials have suggested 75 basis points of rate cuts are on the table in 2024.