Gold falls 0.5% as Treasury yields and oil prices climb
What's next: Investors are awaiting minutes from the Fed's July meeting for clues on whether rate-hike bets ease further.
Gold prices slipped Tuesday as higher U.S. Treasury yields and firmer oil prices weighed on demand for bullion, while traders looked ahead to minutes from the Federal Reserve's July policy meeting. Spot gold fell 0.5% to $4,391.14 an ounce and December futures dropped 0.6% to $4,446.70. The benchmark 10-year Treasury yield extended gains before later easing, increasing the opportunity cost of holding non-yielding gold. Oil also moved higher as tensions over Iran and the Strait of Hormuz kept inflation concerns alive. Elevated energy prices can strengthen expectations for tighter Fed policy, even as recent U.S. job, inflation and retail sales data have led markets to scale back bets on a September rate increase.