FX.co ★ AB2 | XAU/USD, GOLD

XAU/USD

As US Treasury bond yields decline ahead of Fed minutes, gold rises again toward $4,400 early on Wednesday. Despite rising oil prices and concerns about Hormuz, the US dollar enters a negative consolidation. Technically, in the midst of a strong daily chart, gold bulls must regain $4,450. Early on Wednesday, gold is heading back toward the $4,400 mark after a sharp decline on Tuesday. Now, all eyes are on the US Federal Reserve's (Fed) July policy meeting minutes, which are scheduled to be released later on Wednesday, in hopes of providing a new boost to trading. After a brief halt, gold's upward trend has resumed as bulls continue to boost dwindling expectations that the Fed will raise interest rates during its monetary policy meeting on September 16-17. According to the CME Group's FedWatch Tool, markets reduced their bets on a September Fed rate rise from about 50% to 35% as of this writing due to recent poor US labor market statistics and modest inflation

a result, the forthcoming Federal Open Market Committee (FOMC) minutes will be thoroughly examined to determine the board members' perspectives under Kevin Warsh's new leadership, which may provide new information about the central bank's future interest rate strategy. Notably, Fed Chair Warsh adhered to his language of preserving price stability, although the FOMC voted 9-3 to keep rates between 3.5% and 3.75% last month. A new sell-off in the US dollar (USD) and US Treasury bond rates might be triggered if markets believe that the FOMC's internal discussion is less hawkish and that policymakers are adhering to the wait-and-see strategy. This would increase the value of non-yielding assets like gold. However, in light of worries about inflation and the spike in oil prices brought on by the Middle East war, the committee demonstrates a sense of urgency to move on rates. As the USD may see a resurgence, there may be strong demand to sell gold. In this case, there is a chance that the Fed will raise interest rates in September.