Gold inches higher as US Treasury yields retreat ahead of Fed minutes

Gold prices edged up on Wednesday, August 19, supported by a pullback in US Treasury yields from recent peaks following a broad sell-off across global sovereign debt markets.

Spot gold gained 0.2% to $4,342.33 per ounce, recovering slightly after a near 2% decline in the prior session, Reuters reported. Spot silver softened by 0.5% to $62.99 per ounce, having changed hands at around $63.01 earlier at 02:40 GMT.

A softening in benchmark bond yields eased pressure on non-yielding bullion as investors turned their attention to the upcoming release of minutes from the Federal Reserve's latest policy meeting. Money markets are currently pricing in a 65% probability that the Fed will leave interest rates unchanged in September, against a 35% likelihood of a rate hike.

N.Tebrizli