Gold down slightly ahead of Fed minutes

Gold futures on the COMEX division of the New York Mercantile Exchange dropped slightly on Wednesday as investors were awaiting the Federal Reserve's minutes of its latest policy meeting.

The most active gold contract for December delivery fell 1.5 U. S. dollars, or 0.12 percent, to settle at 1295.2 dollars per ounce.

Gold prices slipped two sessions in a row as the U.S. equities market was in a rally mode, sapping demand for the perceived safe haven of precious metals. Gold futures traded slightly tighter amid low volume Wednesday with many investors choosing to wait on the sideline ahead of the Fed minutes.

Traders will be weighing the Federal Open Market Committee minutes due to be released later in the day, looking for clues as to when the Fed will start hiking interest rates. What is expected be much more revealing is Fed Chairwoman Janet Yellen's speech Friday at the Federal Reserve Bank of Kansas City's annual economic symposium in Jackson Hole, Wyoming. Some analysts, however, cautioned investors not to expect too much from her speech.

Silver for September delivery gained 8.5 cents, or 0.44 percent, to close at 19.497 dollars per ounce. Platinum for October delivery lost 10.3 dollars, or 0.72 percent, to close at 1,429.2 dollars per ounce.