NEW YORK: Gold extended its gains into a sixth session on Wednesday, hovering near a more than two-week peak, helped by faltering US Treasury yields, while the market awaited the minutes from the Federal Reserve’s June meeting.
Spot gold was up 0.4% at $1,804.31 per ounce by 12:13 p.m. EDT (1613 GMT), having hit its highest level since June 17 at $1,814.78 on Tuesday. US gold futures gained 0.6% to $1,804.80 per ounce.
“On a near-term basis gold traders seem to be focused on the potential for the Fed to tighten monetary policy,” said Jim Wyckoff, senior analyst with Kitco Metals. “That’s going to be bearish just because it will take some liquidity out of the marketplace that has been supporting the gold market.”
Traders will be listening out for fresh clues on the timing of any monetary policy changes, Wyckoff added.
The minutes from the Fed’s latest meeting, due at 2 p.m. EDT (1800 GMT), are in focus after a surprise hawkish tilt by the US central bank last month caused gold to slump 7% in June.
“The FOMC minutes could have a major say on whether spot gold can hold on to the $1,800 handle,” said Han Tan, chief market analyst at Exinity Group.
“Fresh hawkish cues could see spot gold moving back below its 100-day simple moving average (SMA) around $1,790.”
Meanwhile, benchmark 10-year Treasury yields hit their lowest in more than four months.
Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-interest bearing bullion.
Elsewhere, silver fell 0.3% to $26.06 per ounce, platinum eased 0.6% to $1,085.44, and palladium climbed 1.8% to $2,843.18.
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