Gold Prices Slip Amid Higher Yields and Inflation Fears

Gold prices slipped on Thursday, July 30, as higher US Treasury yields offset the focus on Federal Reserve Chairman Kevin Warsh's message about tackling inflation.

The spot gold price fell 0.4% to $4,048.39 per ounce after rising as much as 2% on Wednesday. US gold futures for August delivery gained 0.3% to $4,045.70.

ANZ analyst Soni Kumari said that yields are a byproduct of rate expectations and higher inflation fears will translate into higher rates, which is pressuring gold.

Markets are still pricing in a 65% chance of a rate hike in September, although this is down from about 81% before the policy decision. Investors are also awaiting June's US Personal Consumption Expenditure data, due at 1230 GMT.