Gold rises as dollar weakens, bond yields ease
GLD•Oil and other metals
On the geopolitical front, oil prices hit a three-week high on Wednesday amid uncertainty over shipping through the Strait of Hormuz, after Trump said no talks were taking place with Iran and insisted the waterway was open, contradicting Iran's claim that it remained closed.
Among other metals, spot silver XAG= inched up 0.1% to $63.40 per ounce, platinum XPT= edged up 1.3% to $1,734.32 and palladium XPD= advanced 0.3% to $1,294.44.
Fed minutes and rate expectations in focus
Markets now await the minutes of the Federal Open Market Committee's July meeting scheduled for release at 1800 GMT.
Traders are pricing in a 67% probability of a Fed hold, according to the CME FedWatch Tool. Bets for a hike have declined after a series of soft U.S. economic data. FEDWATCH
Lower interest rates make gold more attractive, as the metal itself pays no yield or interest.
Gold rebounds as yields ease and dollar softens
Gold rebounded on Wednesday as the U.S. dollar weakened and global bond yields eased from multi-decade highs, while markets awaited minutes from the Fed's latest policy meeting for clues on its interest rate outlook amid persisting inflation risks.
Spot gold XAU= gained 0.8% to $4,370.19 per ounce by 1103 GMT, while U.S. gold futures GCcv1 edged 0.1% higher to $4,425.40.
Bullion declined about 2% on Tuesday after long-term borrowing costs from the U.S. to Germany and Japan rose to multi-decade highs on inflation concerns.
The dollar softened as the bond selloff slowed on Wednesday, improving the appeal of non-interest-bearing bullion.
"In the near term, bullion may struggle for a clear trajectory, pulled in competing directions as markets weigh lingering geopolitical friction against the Fed's evolving policy path," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.
