Gold Slips As Yields Edge Up After RBNZ Decision

Gold prices fell slightly on Wednesday, tracking a recovery in bond yields after the Reserve Bank of New Zealand (RBNZ) delivered its biggest ever interest rate hike at 75 basis points and warned of economic slowdown.

The dollar also edged up slightly after data showed Eurozone economic activity contracted for a fifth consecutive month in November.

Spot gold slipped 0.1 percent to $1,738.15 per ounce, while U.S. gold futures were down 0.1 percent at $1,738.35.

Investors eyed the Federal Reserve’s November meeting minutes later in the day for additional clues on the path of interest rates.

Along with the Fed minutes, reports on durable goods orders and new home sales may attract attention ahead of a U.S. holiday on Thursday for Thanksgiving.

The European Central Bank publishes account of its October policy meeting on Thursday.