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Gold edges up toward $4,070 as US yields slip
XAU/USD climbed 0.6% as the US 10-year T-note yield eased to 4.645%, with markets also looking ahead to the Fed and key US data.
Gold prices rose for a second session, gaining 0.58% as falling US Treasury yields supported bullion, pushing XAU/USD toward the $4,070 area. FXStreet reported the move came amid improved risk sentiment after the White House paused attacks linked to Iran.
Geopolitics and rate expectations both weighed on the session, with US President Donald Trump indicating there is “a chance we can make a deal with Iran” and that the parties were open to resuming negotiations. At the same time, money markets priced in a 60% chance the Fed would keep rates unchanged at its Wednesday decision and a slim 40% chance of a 25-basis-point hike, according to Prime Terminal data.
In rates, the US 10-year T-note yield fell 3.5 basis points to 4.645%, a backdrop that helped gold recover even as XAU/USD nearly returned to the $4,050 area. FXStreet also cited a drag from US equities, noting that news a Chinese state-backed firm is producing chipmaking machines pushed stocks lower earlier.
Looking ahead, traders were focused on Thursday’s US economic calendar, including second-quarter GDP, the final print of the Fed’s preferred inflation gauge, the Core PCE Price Index, and Initial Jobless Claims. FXStreet added that oil prices fell 6% to a one-week low after the US and Iran paused strikes, which raised hopes for de-escalation and renewed shipping through the Strait of Hormuz.
Latest closeGold $4,055.70 ▲0.2%