Gold Prices Edge Higher as Dollar Weakens Ahead of Fed Minutes

Gold prices moved slightly higher on Wednesday, recovering from their steepest one-day decline in nearly a month as a weaker U.S. dollar and easing Treasury yields provided support. Investors are now awaiting the Federal Reserve’s July meeting minutes for fresh signals on the interest rate outlook.

Spot gold rose 0.1% to $4,339.20 an ounce, while U.S. gold futures declined 0.6% to $4,392.42. Silver dropped 1% to $62.69 an ounce, while platinum slipped marginally to $1,716.02. The U.S. Dollar Index fell 0.1% to 99.55, helping limit pressure on bullion.

Gold’s recent recovery has faced headwinds from elevated U.S. Treasury yields and stronger oil prices. The 30-year Treasury yield reached its highest level in almost two decades on Tuesday, while the 10-year yield remained near levels last seen in early 2025. Higher bond yields typically reduce gold’s appeal because the precious metal does not generate interest.

Rising oil prices are also influencing the gold market as tensions surrounding the Strait of Hormuz keep energy supply risks elevated. Higher energy costs could intensify inflation and encourage the Fed to maintain higher interest rates for longer.

The geopolitical outlook remains uncertain after U.S. President Donald Trump said there were no ongoing talks with Iran. A June memorandum between Washington and Tehran has also expired without an extension, adding uncertainty over the future of the critical shipping route.

Investors are now focused on the Fed minutes for indications of how policymakers view inflation and future rate cuts. Fed Chair Kevin Warsh’s upcoming Jackson Hole remarks will provide another important monetary policy signal.

IG senior market analyst Tony Sycamore said gold must break above resistance around $4,430 and last week’s $4,449 high to restore stronger bullish momentum. A sustained breakout could put the 200-day moving average near $4,507 in focus.