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Gold rises as suspected Yen intervention weakens the US dollar

XAU/USD was last around $4,100 after dropping from $4,028 earlier in the session, while the US Dollar Index slipped to about 99.9.

Reported · Written up by our desk · Major Pairs

Gold prices climbed about 0.9% on Thursday as the US dollar weakened after suspected intervention in foreign exchange markets, with the Japanese yen moving to a near two-month high versus the greenback, according to FXStreet.

The XAU/USD pair was trading around $4,100 after bouncing off the day’s low near $4,028. Speculation that Japanese authorities intervened helped lift gold to a five-day high around $4,126, while the US Dollar Index, a gauge versus six currencies, fell to roughly 99.9.

The move came as US inflation data met expectations, with the Core PCE Price Index for June easing to 3.3% year over year and headline PCE slowing to 3.7%. FXStreet also noted that the Fed held rates steady, but three regional bank presidents voted for a 25 basis point hike, and that uncertainty around forward guidance pushed the premium on the US 30-year yield to around a level last seen in 2007 near 5.21%.

Looking ahead, FXStreet said Friday’s US calendar includes University of Michigan consumer sentiment. It also flagged that renewed fighting in the Gulf could keep energy prices elevated, with WTI down about 1% on the day near $83.59, while still up nearly 20% for July so far.

Latest closeGold $4,166.30 ▲3.3%|WTI crude $84.21 ▼0.3%|Dollar index 99.97 ▼0.8%

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