Gold prices steady ahead of Fed minutes

20-May (Reuters) – Gold edged higher on Wednesday, recovering some lost ground after the previous session’s slide, but gains were muted as the dollar strengthened ahead of minutes from the Federal Reserve’s latest policy meeting.

The metal slid sharply on Tuesday, posting its biggest one-day loss since April 30, as the dollar rebounded from its weakest run against the euro in four years.

Spot gold was up 0.2 percent at $1,209.58 an ounce at 1141 GMT, while U.S. gold futures for June delivery were $2.60 higher at $1,209.30. Prices fell 1.5 percent on Tuesday after hitting a three-month high of $1,232.20 the previous day.

…The dollar scaled a three-week high against the euro on Wednesday, with the European currency extending losses after a Greek official said the country might not make an upcoming repayment to the International Monetary Fund.

Some analysts said there is a broad feeling the dollar is moving back on the offensive after a month-long pullback. There were mixed views about the likely message from the Fed later in the day.

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