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Gold eases from early-June highs as hawkish Fed minutes back USD

Gold pulled back as hawkish July 28-29 FOMC minutes and US-Iran tensions supported the US dollar, while the US Treasury said it will at least double long-dated debt buybacks from September.

Reported · Written up by our desk · Precious Metals

Gold (XAU/USD) is retreating from its highest level since early June, with the move seen during Thursday’s Asian session after the prior day’s gains of more than 3%, according to FXStreet.

The pullback is linked to hawkish signal in the Federal Reserve’s July 28-29 meeting minutes, where Fed officials said rates would likely need to be raised soon unless there was more progress on bringing inflation down. FXStreet also cited ongoing concerns about sticky inflation, including the risk that higher energy prices tied to a Middle East crisis could reignite inflationary pressure.

FXStreet further pointed to US-Iran tensions as a factor keeping demand for the US dollar elevated, since a stronger USD can weigh on gold, which does not pay interest. At the same time, the outlet noted that sliding US bond yields may limit USD upside.

Separately, FXStreet said the US Treasury announced it will at least double buyback operations for long-dated government debt starting in September, a step that helped lower the 30-year yield from its highest level since June 2007. Traders are now watching Thursday’s US data, including the Philly Fed Manufacturing Index and Weekly Initial Jobless Claims, plus speeches from influential FOMC members.

Latest closeGold $4,432.00 ▲1.6%

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