Gold (XAU/USD) regains ground on Wednesday after falling nearly 2% on the previous day as a softer US Dollar (USD) and a modest pullback in long-term US Treasury yields lend support to the precious metal. At the time of writing, XAU/USD trades around $4,371, up 0.90% on the day.
Buyers, however, lack strong conviction as a mixed fundamental backdrop keeps XAU/USD trapped within the tight range seen over the past week. Gold’s near-term direction hinges on Federal Reserve (Fed) signals and developments in the Middle East amid a sparse US economic calendar.
The minutes of the Federal Open Market Committee’s (FOMC) July meeting, due at 18:00 GMT, will be closely watched as uncertainty over the Fed’s interest-rate outlook persists.
Since the July meeting, weaker-than-expected labour market and inflation data have reduced the likelihood of an interest-rate hike at the upcoming meeting….
