Gold prices held firm near the key $1,800/ounce psychological level on Wednesday, helped by a drop in U.S. Treasury yields, while investors awaited minutes from the Federal Reserve’s June meeting for more clues on its policy outlook.
Spot gold was up 0.1% at $1,797.84 per ounce, as of 0500 GMT, after hitting its highest since June 17 at $1,814.78 on Tuesday.
Market participants are now awaiting minutes from the Fed’s latest meeting, due at 1800 GMT, which could shed more light on the interest rate trajectory after a hawkish tilt by the U.S. central bank last month.
“Rising uncertainty around monetary policies, inflation and increasing risk of equity market volatility should favor safe-haven gold demand,” ANZ analysts said in a note.
“Central banks have increased gold purchases in recent months, offsetting some of the physical demand losses in Q2 2021.”
Spot gold may retest a support at $1,789 per ounce, a break below which could cause a fall to $1,774, according to Reuters technical analysts Wang Tao.
Elsewhere, silver was steady at $26.15 per ounce, palladium fell 0.2% to $2,787.67, and platinum slipped 0.5% to $1,086.38.