Gold Prices Hold Firm Ahead of Fed Minutes Release

Gold prices held steady at around $4,340 on Wednesday as investors waited for the release of the Federal Reserve's minutes from its July meeting. The market had been expecting a pause in interest rate hikes, with Reuters noting a 65% chance of a September hold.

The Fed's decision to maintain rates at 3.50%-3.75% had been a major factor in gold's recent decline, as higher yields make holding non-yielding bullion more expensive. However, the dollar's weakness provided some support for gold, making it cheaper to other currencies.

Central banks have continued to buy gold, with China's People's Bank of China adding 20 tons to its holdings in July, extending a buying record that now spans 21 months. This has helped boost demand for gold, which has been weighed down by the surge in long-term Treasury yields.