Gold edges down as dollar, yields rise ahead of Fed rate decision, Warsh remarks
Ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, June 16, 2026. REUTERS/Alexander Manzyuk
July 29 : Gold fell on Wednesday, pressured by a firm dollar and elevated U.S. Treasury yields, while investors awaited the U.S. Federal Reserve's interest-rate decision and remarks from Chair Kevin Warsh later in the day for clues on its policy path.
Spot gold fell 0.5 per cent to $4,008.11 per ounce by 11:40 a.m. EDT (1540 GMT), while U.S. gold futures for August delivery lost 0.8 per cent to $4,006.20.
Yields on the benchmark 10-year U.S. Treasury note drifted higher. The U.S. dollar firmed, making bullion more expensive for overseas buyers. [USD/]
"The combination of the oil price bounce triggering higher yields due to Iranian attempted strikes on US bases overnight and last-minute jitters ahead of the Fed result has put gold under pressure," said Tai Wong, an independent metals trader.
"There is important support at 3950 with stop-losses below; sustained price action under that will trigger deeper losses."
ELEVATED OIL PRICES MAY MEAN HIGHER-FOR-LONGER RATES
The Fed's policy-setting committee is due to announce its decision at 2 p.m. EDT (1800 GMT). Warsh is scheduled to hold a press conference half an hour later.
Traders expect an around 64 per cent chance of policymakers holding interest rates steady in today's meeting, while seeing an 80 per cent chance of a U.S. rate hike in September, according to CME Group's FedWatch tool.
Oil prices rose more than 7 per cent as tensions in the Middle East escalated following U.S. and Saudi strikes in Iraq and an intercepted Iranian missile attack on U.S. forces.
Elevated energy prices have been weighing on gold prices as they raised expectations of higher-for-longer interest rates, which tend to diminish the appeal of non-yielding gold.
Investors also await the U.S. Personal Consumption Expenditures data for June, the Fed's preferred inflation gauge, due on Thursday, for further cues on monetary policy.
Among other major central banks, the Bank of England and the Bank of Japan are also widely expected to keep rates unchanged this week, and to caution against mounting inflationary pressure from the Middle East war.
Spot silver eased 0.2 per cent to $57.02 per ounce, platinum dropped 1.4 per cent to $1,582.24, and palladium dipped 2 per cent to $1,244.61.
