Gold Awaits Fed Minutes as Yields Rebound
Gold prices held steady on Wednesday ahead of the release of minutes from the Federal Reserve's July meeting. The minutes are expected to provide clues on the Fed's monetary policy outlook, which has been a major driver of gold prices lately.
The spot price of gold was little changed at $4,337.59 per ounce by 0558 GMT, after falling nearly 2% on Tuesday due to higher Treasury yields. U.S. gold futures slipped 0.7% to $4,391.20.
Kelvin Wong, a senior market analyst at OANDA, said reduced expectations for Federal Reserve interest rate hikes and rising fiscal budget concerns are positive factors for gold. However, traders are pricing in a 64% probability of a Fed hold and a 36% chance of a rate hike next month.
Lukman Otunuga, head of market research at FXTM, said that if gold breaks above $4,390, it could open the door towards $4,505. On the other hand, a break below $4,300 could expose $4,200 and $4,150.