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Gold rises above $4,100 as a weaker US dollar lifts bullion

XAU/USD traded around $4,132 after bouncing from about $4,021, with the dollar pressured by falling oil and lower US 10-year Treasury yields.

Reported · Written up by our desk · Major Pairs

Gold rebounded above $4,100 in the North American session, with XAU/USD up more than 1.3% as the US dollar retreated, FXStreet reported. The pair was quoted near $4,132 after recovering from weekly lows around $4,021 hit on Wednesday.

The move was linked to weaker oil prices and easing tensions in the Middle East, which weighed on energy and pressured the dollar. Even though West Texas Intermediate reclaimed $75 per barrel earlier, oil later pulled back on Thursday.

The dollar decline also coincided with falling US Treasury yields, the outlet noted. The 10-year T-note was down five basis points at 4.529%, contributing to a weaker US Dollar Index reading of about 100.85, down 0.21%.

Looking ahead, attention is set on next week’s US data releases including CPI and PPI, alongside jobless claims and housing data, as well as a scheduled appearance by Fed Chair Kevin Warsh in Congress. FXStreet also pointed to money markets pricing a 62% chance of a 25 basis point rate hike at the September meeting and noted recent signals from Fed commentary on inflation.

Latest closeGold $4,091.40 ▼1.3%|Dollar index 100.99 ▼0.1%

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