Gold Edges Higher as Yields Ease Amid Fed Minutes Anticipation
Gold prices edged higher in early Asian trade on Wednesday after US Treasury yields eased from recent highs. Spot gold was up 0.2% at $4,342.33 per ounce, while US gold futures for December delivery fell 0.6% to $4,396.30.
The easing of yields came as the global bond selloff continued, with long-term borrowing costs in major economies nearing their highest levels in decades. However, despite being known as an inflation hedge, higher interest rates typically weigh on gold prices as they strengthen the dollar and make yield-bearing assets more attractive to investors.
The Federal Reserve is set to release its meeting minutes at 1800 GMT, with traders pricing in a 65% probability of keeping rates unchanged and a 35% chance of a rate hike in September. Meanwhile, the Bank of England is expected to leave interest rates unchanged at 3.75% for the rest of the year.