Gold Treads Water Near $4,560 as Markets Brace for Fed Minutes
Gold prices held steady through Monday and into Tuesday after last week's CPI-driven selloff, with traders staying on the sidelines ahead of Wednesday's release of the April FOMC meeting minutes. The metal traded in a narrow range between $4,548 and $4,578, the tightest two-day band in five weeks1.
A quiet floor under the market
Despite the recent surge in real yields, official-sector demand has remained a powerful floor under prices. The World Gold Council reported that central banks added 196 tonnes to global reserves in Q1, the third-strongest first-quarter total on record2. The People's Bank of China extended its purchase streak to 30 consecutive months in its April update, a signal that the strategic case for de-dollarization remains intact regardless of short-term U.S. rate moves3.
Yields and the dollar
The 10-year Treasury yield settled at 4.29% on Monday, little changed from Friday's close4. The dollar index gave back a small portion of its weekly gain, slipping to 105.45. Both moves suggest markets are waiting for fresh data and Fed guidance rather than committing to a new direction.
What to watch
Wednesday's minutes will be parsed closely for any sign of internal disagreement about the path forward. Markets are pricing roughly a 35% probability of a September cut, down from 62% a month ago6. A more hawkish tone could push gold back toward the $4,500 support level that has held three times in 2026, while any reference to "modest" or "gradual" easing would likely reopen the path to $4,700.
Sources
- Yahoo Finance, COMEX gold futures (GC=F) intraday data, May 18 to May 19, 2026
- World Gold Council, Gold Demand Trends, Q1 2026 report
- People's Bank of China, official foreign exchange reserve data release, April 2026
- U.S. Department of the Treasury, daily Treasury par yield curve
- Intercontinental Exchange, U.S. Dollar Index (DXY) settlement data
- CME FedWatch Tool, implied Fed funds rate probabilities