Gold prices edged higher in early Asian trading on Wednesday, supported by declining US Treasury yields from their recent highs. Traders are now keenly awaiting the release of the Federal Reserve's (US central bank) meeting minutes for market insights. Spot gold
saw a 0.2% increase, reaching $4342.33 per ounce by 00:30 GMT, after a nearly 2% drop on Tuesday. Conversely, US gold futures for December delivery fell 0.6% to $4396.30. The retreat in US Treasury yields from elevated levels occurred amidst a
global bond sell-off, pushing long-term borrowing costs in major economies to multi-decade highs. In a related market development, US President Donald Trump stated Tuesday that Washington is not holding talks with Iran, affirming the Strait of Hormuz remains open. This contradicted
an earlier Iranian claim of closure. Reduced prospects for an agreement to end a nearly six-month conflict contributed to rising oil prices. While gold is considered a safe haven and an inflation hedge, rising interest rates typically pressure its prices, strengthening
the dollar and making yield-bearing assets more attractive to investors. The Federal Reserve is set to publish the minutes from the latest Federal Open Market Committee (FOMC) meeting, which sets monetary policy, at 18:00 GMT. The CME Group's FedWatch tool indicates
traders currently assign a 65% probability to the US central bank maintaining current interest rates, versus a 35% chance of a September hike. For other precious metals, spot silver declined 0.5% to $62.99 per ounce. Platinum rose 0.3% to $1717.03, while
palladium decreased 0.3% to $1286.73.
