Gold prices declined on Tuesday, settling beneath a two-week peak reached in the prior session, as investors anticipated the forthcoming release of the U.S. Federal Reserve’s June meeting minutes to gain insights into the monetary policy trajectory under new Chair Kevin Warsh. Spot gold declined by 0.4% to $4,148.59 per ounce as of 0043, while U.S. gold futures for August delivery decreased by 0.2% to $4,160.20. The minutes from the Federal Open Market Committee’s meeting held on June 16-17 will be made public on Wednesday. Forward guidance can serve as a “valuable tool” that accelerates the effects of monetary policy when applied appropriately; however, it may pose challenges when implemented rigidly, according to Fed Governor Christopher Waller on Monday. U.S. services sector activity experienced a decline in June, as the surge in orders from businesses responding to the Middle East conflict began to wane.

However, employment showed signs of recovery after three consecutive months of contraction, indicating ongoing stability in the labour market. Gold prices have declined over 25% from the record highs achieved earlier this year, as the conflict involving the U.S. and Israel with Iran has heightened inflation concerns, strengthened the dollar, and solidified expectations for interest rate increases this year. However, bullion reached a two-week high on Monday as the U.S.-Iran ceasefire deal alleviated some inflation concerns, while last week’s weaker-than-expected U.S. jobs data led markets to reduce expectations for a near-term interest rate hike.

Traders currently estimate a probability of approximately 57% for a rate increase in September, a decrease from over 60% prior to the data release, as indicated by the CME FedWatch tool. Lower rates enhance the appeal of zero-yield bullion for investors. Citi has become the fifth bank to facilitate transactions in London’s over-the-counter gold market, the largest bullion trading center globally, marking a significant expansion of its precious metals business, the bank announced on Monday.

Perth Mint reported that gold product sales reached a two-month peak in June, increasing by 53% compared to May. In contrast, silver sales experienced a decline of 19% from the previous month, according to the refiner’s announcement on Tuesday. Elsewhere, spot silver slipped 0.8% to $61.57 per ounce, platinum eased 0.8% to $1,618.78, and palladium fell 0.4% to $1,264.11.