2019.06.2606:49:00UTC+00Gold Prices Dip From Six-year High After Fed Comments

Gold prices slipped on Wednesday, moving further away from a six-year high hit the previous day after U.S. Federal Reserve officials played down expectations of aggressive rate cuts.

Spot gold fell 1.2 percent to $1,406.99 per ounce, heading for its first decline in seven sessions. U.S. gold futures were down 0.6 percent at $1,410.35 an ounce.

The U.S. dollar edged up from a three-month low after Fed Reserve Chairman Jerome Powell pushed back against pressure from President Trump to cut interest rates, saying that monetary policy should not overreact to any individual data point or short-term swing in sentiment.

Separately, well-known Fed dove Bullard said that a 50 bps rate cut in July would be too much.

Investors also await the outcome of the G20 summit this week for directional cues.

The United States was not willing to come to the meeting with concessions, a senior administration official said on Tuesday.

Washington wants Beijing to come back to the table with the promises it withdrew before talks broke down, he said.

No trade deal is expected at the meeting but the two sides may agree not to impose new tariffs as a goodwill gesture to get negotiations going.