Gold Lower Ahead of FOMC Minutes on Signs of Early QE Exit (GLD) (IAU)

Gold is lower Tuesday ahead of FOMC minutes from its April meeting, which might signal an early exit to quantitative easing measures.

One analyst from INTL FCStone said should Fed chair Ben Bernanke hint at such a move, gold could move lower as higher interest rates return.

Tighter policies would strengthen the dollar, causing gold to become more expensive to holders of other currencies.

Latest market data has holdings in SPDR Gold Trust (NYSE: GLD) still at multi-year lows, with its recent stockpile at 1,031.50 tons.

Though China demand for the metal is still robust, India has been moving to cut its deficit via cutting gold and silver imports.

The SPDR Gold Trust is down about 2 percent, while the iShares Gold Trust (NYSE: IAU) is off a similar amount.

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