Home›Commodities›Precious Metals›Gold rises as the US dollar slips ahead of Fed minutes

Gold rises as the US dollar slips ahead of Fed minutes

XAU/USD was up 0.9% to around $4,371 as traders pared the odds of a September rate hike, leaving gold in a tight weekly range.

Reported · Written up by our desk · Precious Metals

Gold regained ground on Wednesday after a nearly 2% drop the prior day, supported by a softer US dollar and a modest pullback in long-term US Treasury yields, FXStreet said. At the time of writing, XAU/USD traded around $4,371, up 0.90% on the day.

Still, buyers lack strong conviction, and gold remains trapped within a tight range from the past week, with near-term direction tied to Federal Reserve guidance and developments in the Middle East as the US economic calendar stays sparse.

Attention centers on the minutes of the Federal Open Market Committee’s July meeting, due at 18:00 GMT, with uncertainty about the Fed’s rate path persisting. Since the July meeting, weaker-than-expected labor market and inflation data have reduced the likelihood of an interest-rate hike, and traders cut the probability of a September hike to 32%, according to CME FedWatch.

FXStreet also pointed to concerns about rising US government debt and renewed investor demand, alongside stronger central-bank buying, especially from China. At the same time, elevated longer-term Treasury yields continue to cap gold’s upside by increasing the opportunity cost of holding the non-yielding metal, while risks from Middle East-linked energy shocks keep inflation concerns tilted upward, supporting expectations that rates may need to rise later on.

Latest closeGold $4,432.00 ▲1.6%

More like this

Sources