Gold up slightly ahead of Fed minutes release

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly on Monday ahead of the release of the minutes from the previous U.S. central bank's Federal Open Market Committee (FOMC) meeting.

The most active gold contract for June delivery rose 1.50 U.S. dollars, or 0.12 percent, to settle at 1,274.20 dollars per ounce.

Gold was given support as traders are waiting for the Wednesday release of the minutes from the previous FOMC meeting. The report is likely to have a strong impact on the market, and gives hints as to the timing of interest rates increases, according to analysts.

Ever since April's FOMC meeting, traders believe that the Fed may raise rates from 0.50 to 0.75 during the July FOMC meeting. According to the CMEGroup's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 20 percent at the July 2016 meeting, and 39 percent at the September 2016 meeting.

The consumer price index, housing starts, and industrial production report, are all scheduled for release on Tuesday. The weekly jobless claims and Philadelphia Fed Business Outlook Survey is due on Thursday, and existing home sales report on Friday.

The precious metal was given further support as the U.S. Dollar Index fell by 0.03 percent to 94.55 as of 17:50 GMT. The index is a measure of the dollar against a basket of major currencies. The greenback-denominated gold and the dollar typically move in opposite directions.

Traders also follow closely the U.S. equities markets, as the past three weeks have resulted in losses for those long on equities, giving support to the precious metal.

As of 18:00 GMT, the U.S. Dow Jones Industrial Average has risen by 164 points, or 0.94 percent, but traders remain cautious after three weeks of the market closing lower. Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Silver for July delivery rose 2.20 cents, or 0.13 percent, to close at 17.154 dollars per ounce. Platinum for July delivery added 1.40 dollars, or 0.13 percent, to close at 1,053.50 dollars per ounce.