Dollar, Treasury Yields Pressure Gold Ahead of Fed Minutes

The U.S. dollar and Treasury yields climbed Wednesday, weighing on gold as traders sought clues on whether the Federal Reserve may further tighten monetary policy.

The dollar index stood near 102.30, close to its highest level since April 2025. The 10-year Treasury yield reached about 5.324%, approaching Monday’s 5.349% level, its highest since 2002.

Higher yields can make non-interest-bearing gold less attractive to investors. Rising oil prices tied to the Middle East conflict have also increased inflation concerns, while higher government debt, wider fiscal deficits and continued U.S. economic resilience have lifted financing costs.

Markets are awaiting minutes from the Federal Open Market Committee’s meeting for additional insight into the Fed’s policy direction. Expectations for a more hawkish stance have weighed on gold since the Middle East conflict began in late February.

Gold remains more than 25% below its January record near $5,600. Long-term demand continues to provide fundamental support for the metal.