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Gold rallies above $4,400 as the US dollar weakens
Gold is trading around $4,422 after bouncing from $4,367, supported by a 0.37% dip in the DXY and lower Treasury yields, though long-end yields capped gains.
Gold prices rose more than 1% on Monday, reclaiming the $4,400 level as the US dollar weakened and US Treasury yields fell, according to FXStreet.
The XAU/USD was last around $4,422 after moving off daily lows near $4,367. The US Dollar Index, which tracks the dollar versus six currencies, was down 0.37% at 99.53, a tailwind for bullion, the outlet reported.
FXStreet also pointed to the rate and yield backdrop, noting that the 10-year T-note yield was up over 2.5 basis points to 4.718%, which is capping gold’s push toward $4,500. The report said 30-year yields are near 2007 highs and cited Bloomberg commentary linking elevated long-end yields to investor concerns about surging national debt, a large pipeline of long-dated bond sales, and persistent inflation above the Fed’s 2% target.
The article added that investors are weighing the outlook for Fed policy, with odds for a rate hold at nearly 69% for the next decision and December pricing indicating a 66% chance of a 25-basis-point hike, per Prime Terminal. It also noted that attention is on upcoming July meeting minutes and that geopolitical developments tied to US-Iran negotiations and crude oil price moves are adding to market volatility.
Latest closeGold $4,157.80 ▲0.4%|WTI crude $91.10 ▲3.2%|Dollar index 102.12 ▼0.1%