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Gold slips below $4,350 as traders await FOMC Minutes

XAU/USD recovery is tempered by a firmer US dollar and inflation concerns linked to higher crude prices amid the US-Iran standoff over the Strait of Hormuz.

Reported · Written up by our desk · Precious Metals

Gold (XAU/USD) is struggling to extend a modest bounce off its weekly low, after trading just below $4,350, according to FXStreet.

FXStreet reports that the US dollar is attracting some sellers, which has slowed this week’s recovery from a two-month low, while traders hold off on new bets on the non-yielding metal ahead of the release of the FOMC Minutes.

FXStreet connects the wait to broader inflation jitters, pointing to rising energy prices tied to the Middle East crisis, including crude oil climbing to a nearly three-week high amid the US-Iran standoff over the Strait of Hormuz.

The outlet also notes that geopolitical risk is supporting crude, fueling inflation concerns and lifting the longer-end 30-year US bond yield to its highest level since June 2007, while CME Group’s FedWatch Tool shows traders pricing about a 68% chance of a Fed rate hike by year-end.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%

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