65% Hold Odds Limit Gold's Downside as Yields Rise

Spot gold prices fell by 0.4% to $4,397.42 per ounce due to rising 10-year Treasury yields and higher oil prices.

The increase in yields made non-yielding assets like gold less attractive, causing the price drop.

However, the probability of a rate hold from the Federal Reserve remains high at around 65%, limiting the downside risk for gold.

The Fed's July meeting minutes on August 19 are expected to provide further clarity on interest rates and their impact on gold prices.