Gold edges higher ahead of Fed minutes; prices remain rangebound

Gold continued its gradual recovery during Asian trading hours on Wednesday, supported by a weaker U.S. dollar and declining bond yields. Spot gold (XAU/USD) prices rose to $2,030.47 per ounce by 07:10 GMT.

The gains come as focus squares on the minutes from the Federal Reserve’s late-January meeting, due for release later today. Markets are looking closely for further cues on the potential path of U.S. interest rates. Although Fed members have reiterated that rates will need to stay higher for longer, the market seems to have taken a wait-and-see approach.

Gold bounced from last week’s low

Since the last meeting, a string of hotter-than-expected inflation numbers has seen traders further price out the chance of early rate cuts, weighing on gold. Earlier this month, prices had briefly dipped under $2,000 an ounce to hit two-month lows.

The recovery over recent sessions has brought the yellow metal back within the past month’s $2,000-2,050 range amid an uncertain outlook.

Beyond today’s minutes, addresses from Fed officials Bostic and Bowman will draw attention this week. With higher rates set to diminish gold’s appeal, price direction remains in flux.