Gold slips on firmer Treasury yields, oil prices; Fed minutes in focus
Gold prices declined as rising U.S. Treasury yields and geopolitical tensions in the Middle East increased the opportunity cost of holding bullion. Investors are currently awaiting Federal Reserve policy minutes to gauge future interest rate trajectories.
Why it matters
Fluctuations in gold and oil prices serve as key indicators for global inflationary pressures and central bank monetary policy shifts.
Gold fell on Tuesday, pressured by higher Treasury yields and oil prices, while traders awaited minutes of the U.S. Federal Reserve's July policy meeting for clues on the outlook for interest rates.
Spot gold was down 0.4% to $4,397.42 per ounce, as of 0624 GMT, while U.S. gold futures for December delivery dropped 0.5% to $4,452.90. Yields on the benchmark 10-year U.S. Treasury note extended gains, raising the opportunity cost of holding non-yielding bullion.
Oil prices edged higher after Iran said it would shift to a "fully offensive" military posture following a breakdown in efforts to negotiate a permanent end to the war with the United States, while Washington ruled out extending a temporary ceasefire agreement.
Oil prices will remain one of the key factors keeping gold under pressure as the situation in the Middle East continues to look uncertain, ANZ analyst Soni Kumari said.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in