Gold edges down as dollar, yields rise ahead of Fed rate decision, Warsh remarks
GLD•Other precious metals
Spot silver XAG= eased 0.2% to $57.02 per ounce, platinum XPT= dropped 1.4% to $1,582.24, and palladium XPD= dipped 2% to $1,244.61.
Gold slips as dollar and yields rise
Gold fell on Wednesday, pressured by a firm dollar and elevated U.S. Treasury yields, while investors awaited the U.S. Federal Reserve's interest-rate decision and remarks from Chair Kevin Warsh later in the day for clues on its policy path.
Spot gold XAU= fell 0.5% to $4,008.11 per ounce by 11:40 a.m. EDT (1540 GMT), while U.S. gold futures GCcv1 for August delivery lost 0.8% to $4,006.20.
Oil gains and inflation data watched
Oil prices rose more than 7% as tensions in the Middle East escalated following U.S. and Saudi strikes in Iraq and an intercepted Iranian missile attack on U.S. forces. O/R
Elevated energy prices have been weighing on gold prices as they raised expectations of higher-for-longer interest rates, which tend to diminish the appeal of non-yielding gold.
Investors also await the U.S. Personal Consumption Expenditures data for June, the Fed's preferred inflation gauge, due on Thursday, for further cues on monetary policy.
Among other major central banks, the Bank of England and the Bank of Japan are also widely expected to keep rates unchanged this week, and to caution against mounting inflationary pressure from the Middle East war.
Market nerves build ahead of Fed decision
Yields on the benchmark 10-year U.S. Treasury note US10YT=RR drifted higher. The U.S. dollar firmed, making bullion more expensive for overseas buyers.
