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Gold jumps more than 1.5% as Gulf strikes support safe havens
XAU/USD was quoted around $4,071 as US 10-year Treasury yields rose to about 4.628% and the dollar index edged up 0.12%.
Gold rose more than 1.5% during the North American session as missile strikes involving the US and Iran continued, with mediators still working toward a ceasefire. FXStreet reports that the metal, quoted as XAU/USD, was trading around $4,071.
The rally came as US Treasury yields and the US dollar strengthened, a combination that is typically a headwind for bullion given gold’s lack of yield. FXStreet added that the US Dollar Index, or DXY, rose 0.12% to 101.11 while the US 10-year yield increased by nearly 3.5 basis points to about 4.628%.
Rising oil prices also added support, as Ansar Allah threatened to attack vessels in the Red Sea, lifting concerns about crude supply disruptions. FXStreet said the increased energy risk comes alongside renewed focus on ceasefire talks, including a proposed 10-day ceasefire from Iran.
In the US data calendar, FXStreet noted that the ADP Employment Change 4-week average fell to 16.5K from 19.25K, while the next key items listed were Initial Jobless Claims and then the Federal Reserve’s July 29 meeting. The outlet cited market pricing showing a 78.0% probability of holding rates steady and about a 68.0% likelihood of a September hike, expectations linked to inflation concerns from higher oil prices.
Latest closeGold $3,981.40 ▼1.6%|WTI crude $79.00 ▼0.8%|Dollar index 100.71 ▲0.2%