Gold Prices Hold Steady as Investors Await Fed Minutes

Gold prices held steady on Wednesday as investors waited for the release of the Federal Reserve's minutes from its July meeting. Despite pulling back in the previous session, gold remained flat at $4,337.59 per ounce by 0558 GMT.

The US Federal Reserve's interest rate outlook is a crucial factor in determining gold prices. With reduced expectations for Fed interest rate hikes and rising fiscal budget concerns, gold has become an attractive asset. 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.'

However, traders are still pricing in a 64% probability of a Fed hold and a 36% chance of a rate hike next month. This is reflected in the CME FedWatch Tool, which shows that bets for a hike have declined after a series of soft US economic data.

Lukman Otunuga, head of market research at FXTM, said that 'A sustained break above $4,390 could open the door (for gold) towards $4,505, while a break below $4,300 could expose $4,200 and $4,150.'