Gold Bounces Back as Fed Decision Looms, Eyes on Warsh's Press Conference
Gold prices rose above $4,300 an ounce on Wednesday as softer oil prices gave bullion some breathing room before a Federal Reserve decision that could determine whether this week's rebound develops into something more durable.
The recovery came even as the dollar remained near a two-week high and Treasury yields stayed close to levels that would normally put much heavier pressure on a non-yielding asset. Spot gold climbed 0.8% to $4,328.39 after touching its lowest level in more than a month on Monday.
The US 10-year Treasury yield eased to around 4.99% in Asian trading after moving above 5% on Tuesday, its highest since 2007.
Attention is instead turning to Chair Kevin Warsh's press conference and whether policymakers signal that September could be followed by further tightening. If guidance implies more tightening but long-end yields don't collapse, gold stays bid as a hedge against policy uncertainty.