Gold Prices Rise as Treasury Yields Ease Ahead of Fed Minutes

Gold prices rose on Wednesday as Treasury yields eased, giving investors reason to be optimistic about the precious metal's prospects.

The spot price of gold climbed 0.5% to $4,356.55 per ounce by 3:27 GMT after falling nearly 2% on Tuesday.

US gold futures slipped 0.2% to $4,410.20, while other metals like platinum and palladium saw gains.

Market analysts attribute the increase in gold prices to reduced expectations for Federal Reserve interest rate hikes and rising fiscal budget concerns.

The minutes of the Federal Open Market Committee's July meeting are scheduled for release at 18:00 GMT, with traders pricing in a 64% probability of a Fed hold and a 36% chance of a rate hike next month.