Gold traded below $4,350 an ounce on Wednesday after losing nearly 2% in the previous session, weighed down by elevated global bond yields amid mounting fiscal concerns and persistent inflationary pressures. The 30-year US Treasury yield climbed to a 19-year high this week, while sovereign yields in other major economies also rose to their highest levels in decades.
The precious metal came under additional pressure from higher oil prices, as the US and Iran showed little sign of reaching an agreement to end the conflict and reopen the Strait of Hormuz in the near term. President Donald Trump said there were no active negotiations with Tehran, while Iranian forces have stepped up attacks on shipping in the strait.
Investors are now looking ahead to the minutes from the Federal Reserve’s July meeting and remarks from Chairman Kevin Warsh at the annual Jackson Hole symposium for fresh signals on the monetary policy outlook.
