Gold Fell as Investors Await Fed Meeting Minutes

Gold prices fell on Tuesday. One of the main reasons for this is the increase in U.S. Treasury bond yields and rising oil prices. Additionally, investors are awaiting the publication of the Federal Reserve's (Fed) July meeting minutes to better assess how interest rates will change in the coming period.

Gold's current market price (XAU/USD) declined by 0.5% and reached $4,395.78 per ounce. Meanwhile, the yield on U.S. 10-year Treasury bonds has increased, which puts pressure on gold. Since gold does not provide interest income, owning it becomes less attractive to investors in an environment of higher bond yields.

Market sentiment is also being affected by tensions in the Middle East. Against the backdrop of escalating tensions between Iran and the U.S., oil prices have risen, which has further strengthened inflation expectations.

The rise in energy carriers increases inflation risks and creates expectations that the Fed may maintain interest rates at elevated levels for a longer period.

According to ANZ's forecast, gold prices could reach $5,200 per ounce by the end of the year. One of the main reasons cited is the increase in gold reserves by central banks. For example, China purchased 8 tons of gold in April, which is the highest monthly figure since the end of 2024.

According to analysts, an important level for gold prices is currently $4,500. If the price exceeds this level, further gains may continue.

Source: Investing.com