Gold slips on firmer Treasury yields, oil prices; Fed minutes in focus
GLD•Technical levels and other metals
Spot gold may test a support at $4,381, a break below could open the way toward the $4,320 to $4,351 range, according to Reuters technical analyst Wang Tao.
Among other metals, spot silver XAG= slipped 1% to $65.11 per ounce, platinum XPT= lost 1.2% to $1,748.56, while palladium XPD= fell 1.2% to $1,317.01.
Gold prices ease as yields and oil rise
Gold prices came under pressure on Tuesday from higher Treasury yields and a spike in 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 XAU= was down 0.5% at $4,391.14 per ounce, as of 0423 GMT, while U.S. gold futures GCcv1 for December delivery dropped 0.6% to $4,446.70.
Yields on the benchmark 10-year U.S. Treasury note US10YT=RR extended gains, raising the opportunity cost of holding non-yielding bullion.
Middle East tensions and Fed expectations weigh on bullion
Oil prices also 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. O/R
Oil prices will remain one of the key factors keeping gold under pressure as situation in the Middle East continues to look uncertain, ANZ analyst Soni Kumari said.
Traders' expectations around Fed policy rates are going to be important for gold, with a focus on technical levels, Kumari added.
Elevated energy prices tend to raise inflationary fears and bolster expectations of higher interest rates by the Fed. While gold is typically seen as a hedge against inflation, higher interest rates tend to diminish bullion's appeal.
