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Gold rebounds toward $4,300 as dollar and yields cool

Bullion rose more than 4% on Wednesday, helped by eased expectations for near term Fed rate hikes and softer crude prices.

Reported · Written up by our desk · Precious Metals

Gold prices rebounded sharply, rising more than 4% on Wednesday to trade near the $4,300 per ounce level, as pressure eased on the US dollar and Treasury yields, according to FXStreet.

The rally was driven in part by growing optimism around a potential US Iran agreement, which has weighed on crude oil prices and reduced expectations for aggressive near term Federal Reserve rate hikes.

FXStreet also cited analysts at ING and OCBC, who said the market is shifting from geopolitical risk toward macro relief linked to lower energy costs, supporting gold as a non yielding asset.

ING and OCBC added that technical factors, including short covering after gold broke above resistance, helped accelerate gains, with central bank buying interest also cited, and FXStreet flagged upcoming US payrolls as a key test for whether the move can be sustained.

Latest closeGold $4,308.50 ▲5.2%|WTI crude $75.12 ▼0.9%

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