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By 3 p.m. ET* The dollar is near a three-month high* June gold sales at the Perth Mint are at an eight-month low* SPDR Gold Trust holdings fell 0.2 percent on Wednesday* The price of platinum has dropped by more than 1%. (Updates prices, recasts, adds comments) Reuters, July 8 – Gold prices fell on Thursday, pulled down by a stronger dollar, after minutes from the United States Federal Reserve’s most recent meeting highlighted inflationary pressures and confirmed that asset purchases will be tapered this year. As of 0331 GMT, spot gold was down 0.3 percent at $1,797.46 per ounce, following a sixth day of increases. Gold futures in the United States fell 0.2 percent to $1,798.80. “The dollar responded marginally positively to the FOMC minutes, while gold responded negatively,” said DailyFX currency expert Ilya Spivak. “As we digest the FOMC minutes, we’re beginning to worry that we’re seeing a situation where the Fed is shifting its priority to battling inflation.” The dollar index rose 0.1 percent against its peers, hovering near its highest level in three months, making gold more expensive for holders of other currencies. According to the minutes of the central bank’s June policy meeting, Fed officials felt considerable further progress on the US economic recovery “was largely assessed as not having yet been met,” but agreed they should be ready to move if inflation or other dangers materialized. Despite the fact that gold is considered as an inflation hedge, a Fed rate hike will raise the opportunity cost of keeping bullion, reducing its appeal. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dipped 0.2 percent to 1,040.48 tonnes on Wednesday, indicating a shift in mood. The European Central Bank will release the results of an 18-month strategy review on Thursday, revising its inflation target and outlining its role in the battle against climate change. According to a blog post by the Perth Mint, gold sales dipped to an eight-month low in June, but were up year over year, while silver sales rose to their highest level in more than a year. Silver declined 0.8 percent to $25.92 per ounce, palladium 0.7 percent to $2,832.22 per ounce, and platinum 1.2 percent to $1,072.51 per ounce. (Brijesh Patel in Bengaluru contributed reporting, and Sherry Jacob-Phillips edited the piece.)/nRead More

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