• Gold price threatens to end its streak of gains amid rising US Treasury yields.
• Market turns cautious ahead of FOMC Minutes and due to recent hawkish Fed indications.
• Adjustments in Fed rate forecasts  following inflation reports and bond auctions affect Gold's appeal.

Gold price retreats on Wednesday after registering four days of straight gains as US Treasury bond yields rise in the vicinity of the release of the Minutes from the Federal Reserve’s (Fed) monetary policy meeting in January. Global equities portray a risk-off environment, while US Treasury bond yields resume to the upside amid speculation that the Minutes could reinforce the “hawkish hold” delivered by Fed Chairman Jerome Powell and his colleagues. At the time of writing, the XAU/USD exchanges hands at $2,022.51, down 0.07%.

Traders are eyeing the release of the Federal Open Market Committee (FOMC) Minutes. Fed officials crossed the newswires, expressing that the US central bank would begin to ease monetary policy toward the second half of 2024. However, on the consumer and producer side, January’s inflation data could cause policymakers to refrain from slashing rates as prices escalated above the 3% threshold.

That triggered a repricing on Fed rate cut expectations as shown by the Chicago Board of Trade (CBOT) data, with traders expecting the Federal Funds Rate (FFR) would be at 4.55% by the end of 2024.

Recently, a US 20-year bond auction triggered a jump in US Treasury yields, with the 10-year note yield up five basis points to 4.327%, a headwind for Gold prices