Gold Prices Slip as Treasury Yields Rise Amid Fed Inflation Concerns

Gold prices slipped on Thursday as higher U.S. Treasury yields offset the focus on Federal Reserve Chairman Kevin Warsh's comments on tackling inflation.

The spot gold price fell 0.4% to $4,048.39 per ounce, down from a high of $4,114.80 in the previous session. U.S. gold futures for August delivery gained 0.3% to $4,045.70.

Analyst Soni Kumari noted that higher yields on the benchmark 10-year U.S. Treasury note increase the opportunity cost of holding bullion. 'Yields are a byproduct of the rate expectations, and if market expects that inflation fears will translate into higher rates, yields will be higher,' she said.

The Federal Reserve left interest rates unchanged on Wednesday while reaffirming its commitment to bringing inflation under control. Markets remain uncertain about the central bank's next policy move, with a 65% chance of a rate hike in September, according to CME Group's FedWatch tool.