Gold Prices Regain Ground Amid US Dollar Weakness Ahead of FOMC Minutes

Gold prices have regained some ground after falling nearly 2% on Tuesday as the US Dollar loses momentum ahead of the Federal Reserve's interest-rate outlook.

The precious metal currently trades around $4,366, up 0.75% on the day, with buyers lacking strong conviction due to a mixed fundamental backdrop that keeps it trapped within its recent range.

Traders are waiting for the release of the FOMC minutes for fresh clues on the Fed's interest-rate outlook, which could have a significant impact on gold prices.

Analysts at ING highlight that the unresolved conflict in the Middle East is keeping energy prices bid and contributing to the rise in long-end yields, which are capping gold's upside by increasing its opportunity cost.