Gold futures headed for a fifth straight gain on Wednesday, before a release of minutes from the last meeting of the U.S.s ratesetting Federal Open Market Committee that could provide a fresh catalyst for financial markets.
Golds recent bullish trend, which yesterday helped to propel the precious metal toward a golden cross, which occurs when the 50day moving average crosses above the 200DMA, has been supported by buying in safehaven assets and muted moves in U.S. dollars.
Gold edged higher during early Wednesday trading, with the gains attributable to some dollar weakness in the runup to the publication of the latest FOMC minutes, as well as a drop in risk appetite, wrote Ricardo Evangelista, senior analyst at ActivTrades, in a daily note.
August gold was trading 12.60, or 0.7, higher at 1,806.80 an ounce, following a 0.6 rise on Tuesday that pushed the metal to around a threeweek high amid its longest string of gains since a sixsession streak ended May 20.
Trading for bullion comes as yields for the 10year and 30year Treasury dipped to their lowest levels since February. Lower yields support bullion because it lowers the opportunity cost of owning nonyielding precious metals.
Minutes of the Feds last policy meeting are due at 2 p.m. Eastern. At its June 1516th meeting, policy makers moved up their forecasts for a policy interest rate increase and began talking about when it would be appropriate to discuss the unwinding of its monthly asset purchases.