I. Spot Gold Rebounds Following Overnight Selloff
Spot gold stabilized and rebounded during Wednesday's Asian session, rising $24.36 (+0.56%) to $4,358.60 per ounce. After opening at $4,336.58 and touching a session low of $4,324.62, prices steadily climbed to an intraday peak of $4,360.79. This follows Tuesday's 1.85% decline to $4,334.65 (COMEX gold dropped 1.2% to $4,420.60), driven by soaring long-term Treasury yields and renewed inflation anxiety.
II. US 30-Year Treasury Yield Touches 20-Year Highs
Global sovereign bond markets faced intense selling pressure, pushing the US 30-year Treasury yield to 5.36%—its highest level since mid-2007—while yields in Japan and Germany advanced in tandem. Despite cooling US employment, CPI, PPI, and retail sales data that raised rate-pause expectations for September to nearly 70%, rising energy costs continue to fuel broader inflation concerns, driving bond yields up and elevating the opportunity cost of holding physical gold.
III. Focus Turns to Tonight's FOMC Meeting Minutes
Investors await the release of the July FOMC meeting minutes. The Federal Reserve maintained policy rates at 3.50%–3.75% during the July meeting with a 9-3 vote split. Market participants seek further clarity on internal central bank deliberations regarding persistent inflation, labor market conditions, and future monetary policy trajectories.
IV. Middle East Tensions and Strait Blockades Escalate
Standoffs between the US and Iran over the Strait of Hormuz persist. While Washington claims the waterway remains open, Tehran insists on maintaining restrictions until sanctions are lifted and assets unfrozen. Vessel transit numbers remain in single digits, and new missile strikes reported off regional waters have prompted the UAE to suspend trade with Iran, reinforcing safe-haven demand.
V. Short-Term Market Outlook
Spot gold has recovered above $4,350 from intraday lows of $4,324.62. Immediate short-term resistance sits between $4,360 and $4,385, with support anchored near $4,325 and $4,300. The release of the Fed minutes is expected to drive increased market volatility.