Gold prices rise for 6th straight day amid easing US bond yields

Gold prices edged higher on Wednesday and were on course for a sixth straight session of gains, driven by a dip in US Treasury yields ahead of minutes from the Federal Reserve’s June meeting that could provide more clues on the policy stance.

Spot gold rose 0.32 per cent to $1,801.55 per ounce by 9.10 pm IST, after hitting its highest since June 17 at $1,814.78 on Tuesday. 

“Unquestionably, the key driver (for gold) is the decline in US Treasury yields," independent analyst Ross Norman said.

But the recovery in gold prices has been slow and somewhat lacklustre considering the 7 per cent decline in June, when the Fed sent a hawkish signal, Norman said.

Benchmark 10-year Treasury yields hit their lowest in more than four months.

Focus at the moment is on minutes from the Fed’s latest meeting, which could shed more light on the interest rate trajectory after a hawkish tilt by the US central bank last month. “The FOMC minutes could have a major say on whether spot gold can hold on to the $1,800 handle,” said Han Tan, chief market analyst at Exinity Group.