Gold Prices Gain as Treasury Yields Ease, Fed Minutes Loom
Gold prices rose on Wednesday as US Treasury yields eased, providing a boost to the non-yielding precious metal. The price of spot gold increased by 0.6% to $4,359.58 per ounce, while US gold futures slipped 0.2% to $4,413.40.
The recent global bond selloff has put pressure on gold due to higher long-term borrowing costs in major economies. However, reduced expectations for Federal Reserve interest rate hikes and rising fiscal budget concerns have been positive factors for the metal.
According to Kelvin Wong, a senior market analyst at OANDA, 'Reduced expectations for Federal Reserve interest rate hikes and rising fiscal budget concerns are positive factors for gold.'
The minutes of the Federal Open Market Committee's July meeting are scheduled to be released at 1800 GMT. Traders are pricing in a 67% probability of a Fed hold and a 33% chance of a rate hike next month, according to the CME FedWatch Tool.