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Gold rises despite firm dollar and eases as US Treasury yields fall

XAU/USD was at $4,065, up 0.38%, as the 10-year US Treasury yield slipped 3 basis points to 4.667%.

Reported · Written up by our desk · Precious Metals

Gold prices edged higher on Friday, even as the US dollar held firm, with XAU/USD last trading around $4,065, up 0.38%, according to FXStreet. The US Dollar Index (DXY), which tracks the dollar against a basket of currencies, was slightly higher at 101.46 and set to finish the week with gains of more than 0.60%.

FXStreet also pointed to weaker US Treasury yields as a tailwind for bullion. The 10-year benchmark Treasury note fell three basis points to 4.667%, helping support gold as the metal also benefited from easing oil prices.

The report tied price action to a mix of market drivers, including growing speculation about the duration of the US-Iran war and fresh headlines involving Pakistan seeking to resume US-Iran talks at China’s urging. It also noted US data, with the S&P Global Manufacturing PMI slipping from 53.9 to 53.8 while the Services PMI rose from 51.2 to 53.6.

In rates markets, FXStreet said money market pricing increased the odds of a Federal Reserve rate hike at next week’s meeting, with a July 29 hold projected at 59% and a 41% chance of a 25 basis-point hike. It added that traders are also looking ahead to retail sales, durable goods, and additional labor and growth data, while noting gold’s downtrend remains intact unless XAU/USD can reclaim the June 17 cycle high around $4,382.

Latest closeGold $4,051.10 ▼2.3%|Dollar index 101.44 ▲0.3%

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