Gold Attempts to Rebound, FOMC Minutes Set to Determine the Next Move
Gold prices attempted to rebound on Wednesday after suffering a sharp correction in the previous session. XAU/USD traded around the US$4,350–US$4,360 per troy ounce area after briefly falling toward US$4,326. The move suggests that buyers are beginning to return at lower levels, although bullish momentum has yet to fully recover as prices remain below key resistance zones.
From a fundamental perspective, gold received some support as US Treasury yields eased from their recent peaks. The 10-year Treasury yield hovered around 4.71%, while the 30-year yield pulled back from its highest level since 2007. Lower yields help reduce pressure on non-yielding assets such as gold. Meanwhile, markets still see roughly a 65% probability that the Federal Reserve will keep interest rates unchanged in September following softer US employment, inflation, and Retail Sales data.
However, rising oil prices and ongoing Middle East tensions continue to limit gold’s upside. Brent crude remains above US$91 per barrel amid the US-Iran deadlock and disruptions in the Strait of Hormuz. Geopolitical tensions can boost safe-haven demand for gold, but higher oil prices can also reignite inflation concerns and push bond yields higher, creating a two-sided impact on bullion.
From a technical perspective, gold’s short-term structure remains corrective. The US$4,360–US$4,365 area is the nearest resistance, followed by US$4,380 and the psychological US$4,400 level. If buyers manage to push prices above these levels, the rebound could extend toward US$4,420–US$4,435. On the downside, US$4,330–US$4,325 remains an important support zone, with a break below potentially exposing US$4,300.
Market attention is now focused on the release of the July FOMC Minutes. Investors will look for clues on how divided Fed officials were after three policymakers previously favored an interest-rate hike. A more hawkish tone could lift the US Dollar and Treasury yields again, while a stronger wait-and-see stance could support another rebound in gold.(mrv)
Source : Newsmaker.id
