Gold Edges Higher as Investors Await Fed Interest Rate Clues

Gold prices rose by 0.2% in early Asian trading on Wednesday (19/8) after US Treasury yields fell from their highest levels. This move came as investors awaited the minutes of the Federal Reserve's latest meeting for clues on interest rate policy.

The Fed's meeting minutes, scheduled to be released at 18:00 GMT, will provide insight into central bank officials' views on inflation, the labor market, and potential interest rate changes in the coming months. Market participants currently see a 65% probability that the Fed will keep interest rates unchanged in September, while the probability of a rate increase stands at 35%, according to the CME FedWatch Tool.

Meanwhile, US gold futures for December delivery fell 0.6% to $4,396.30 a troy ounce. Higher energy prices, supported by geopolitical developments in the Middle East, could intensify inflationary pressures and strengthen the case for the US central bank to maintain high interest rates, posing a challenge for gold.