Gold inches higher, focus on Fed minutes
- Spot gold was up 0.2% at $4,342.33 per ounce
Gold prices saw a slight increase as US Treasury yields eased, with market participants keenly awaiting the Federal Reserve's meeting minutes for insights into future interest rate decisions.
- Impact of US Treasury yields on gold prices.
- Anticipation of Federal Reserve meeting minutes.
- Market expectations for September interest rate decisions.
Gold prices edged higher in early Asian trade on Wednesday as US Treasury yields eased from recent highs, while market participants awaited the release of the Federal Reserve’s meeting minutes.
Spot gold was up 0.2% at $4,342.33 per ounce, as of 0030 GMT after falling nearly 2% on Tuesday.
Meanwhile, US gold futures for December delivery edged 0.6% lower to $4,396.30.
US yields backed off earlier highs, switching directions amid a global bond selloff that saw long-term borrowing costs in major economies edge toward their highest levels in decades.
The Fed’s release of minutes from the most recent meeting of its monetary policy-setting Federal Open Market Committee is due at 1800 GMT.
Traders are currently pricing in a 65% probability that the U.S. central bank will keep rates unchanged and a 35% chance of a rate hike in September, according to the CME FedWatch Tool.
Meanwhile, the Bank of England will leave interest rates unchanged at 3.75% for the rest of the year, according to a strong majority of economists polled by Reuters.
Among other metals, spot silver fell 0.5% to $62.99 per ounce. Platinum climbed 0.3% to $1,717.03, while palladium lost 0.3% at $1,286.73.