The Federal Reserve released minutes from its April 28-29 meeting. Policymakers adopted a surprisingly hawkish stance, with a growing number of officials open to interest rate hikes. Ongoing conflict in the Middle East continues to stoke inflationary concerns.
The committee remains divided and recorded four dissenting votes. Many participants favored removing language suggesting a bias toward easing policy. This marks a significant shift from previous market expectations for rate cuts.
Spot gold rose approximately 1% following the release. The metal traded near $4,530 per ounce despite the hawkish outlook. A concurrent slide in the U.S. Dollar Index and Treasury yields drove the price action. These factors offset the impact of potential rate hikes on non-yielding bullion.