XAU/USD remains range-bound between $4,000 and $4,200 as traders weigh Fed guidance against rising long-term Treasury yields.
Gold (XAU/USD) traded around $4,080 in European hours, recovering from an intraday low of $4,022 but failing to sustain gains above $4,100. The Federal Reserve’s decision to hold rates at 3.50%-3.75% triggered a brief dollar pullback, but rising 30-year Treasury yields—above 5.20% for the first time since 2007—capped upside.
The Fed’s limited forward guidance left markets uncertain, with the CME FedWatch Tool pricing a 63% chance of a September rate hike. Hawkish dissent within the Fed and elevated energy-driven inflation risks further restrained gold’s recovery, despite a softer US Dollar Index near 100.67.
Traders now await US Personal Consumption Expenditures data for further direction, as conflicting signals from monetary policy and bond markets keep gold trapped in its month-long range.