Gold Rebounds Above $4,350 as USD Softens Ahead of FOMC Minutes
Gold prices have recovered from their weekly low after the US Dollar softened ahead of the FOMC Minutes. The precious metal climbed above $4,350 in the last hour as traders await interest-rate cues from the Federal Reserve.
The emergence of some USD selling has helped gold rebound from its fresh weekly low during the Asian session on Wednesday. However, oil-driven inflation risks remain supportive of elevated US bond yields and may limit USD losses.
Traders are cautious about placing fresh bets on gold due to persistent geopolitical uncertainties surrounding the Strait of Hormuz crisis. The Middle East tensions have led to a rise in crude oil prices, fueling inflation concerns and lifting the 30-year US bond yield to its highest level since June 2007.