Gold prices edged higher on Wednesday after recording their biggest decline in nearly a month in the previous session, supported by a weaker US dollar and lower Treasury yields as investors awaited the release of the Federal Reserve’s July meeting minutes.
Spot gold rose 0.1% to $4,339.20 an ounce, while gold futures fell 0.6% to $4,392.42 an ounce. Spot silver declined 1% to $62.69 an ounce, while platinum slipped 0.04% to $1,716.02. The US Dollar Index also fell 0.1% to 99.55.
Gold has struggled to extend its recent recovery as higher US bond yields and rising oil prices have renewed pressure on the precious metal.
The US 30 year Treasury yield reached its highest level in nearly two decades during the previous session, while the 10 year yield remained close to its highest levels since early 2025.
Higher yields tend to weigh on gold because bonds become more attractive when they offer stronger returns, while gold does not generate interest income. This increases the opportunity cost of holding bullion and may encourage investors to move capital toward fixed income assets.
Higher oil prices have also added pressure on gold amid persistent tensions in the Middle East. Rising energy costs can increase inflationary pressures, potentially prompting the Federal Reserve to delay interest rate cuts or keep rates elevated for longer.
The latest wave of selling came after gold had managed to move above $4,000 an ounce, supported by renewed investor demand and increased central bank purchases, particularly from China.
Gold’s outlook also remains closely linked to developments in the Strait of Hormuz, which accounted for roughly one fifth of global oil and liquefied natural gas flows before the war. Continued disruption to shipping through the waterway remains a major risk for energy prices and global inflation.
US President Donald Trump said on Tuesday that no talks were currently taking place with Iran, adding to uncertainty over the future management of shipping through the strait. A memorandum of understanding signed by Washington and Tehran in June also expired without an agreement to extend it, keeping pressure on energy markets.
Iran and Oman had previously shown signs of moving closer to arrangements concerning the shipping route, while vessels continued trying to leave the strait. Some ships reportedly switched off satellite tracking systems in an effort to avoid detection.
Investors are now awaiting the Federal Reserve’s July meeting minutes for further clues about policymakers’ assessment of inflation risks and the appropriate path for interest rates. Attention is then expected to shift to remarks from Fed Chair Kevin Warsh at the Jackson Hole symposium next week.
Tony Sycamore, senior market analyst at IG, said gold’s decline in the previous session to around $4,334 reflected the metal’s inability to withstand the combination of higher oil prices and rising bond yields.
From a technical perspective, Sycamore said gold needs to break above descending trend resistance near $4,430, drawn from the record high of around $5,602 reached in late January, as well as last week’s high near $4,449, to regain bullish momentum.
If gold manages to hold above these levels, attention could shift toward the 200 day moving average near $4,507 an ounce.
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