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Gold reaches three-month high above $4,600 on Middle East risk
XAU/USD was around $4,622, up more than 2.3%, as the US Dollar held steady and attention turned to Treasury buyback plans and Fed rate odds.
Gold prices rose to a three-month high, pushing above $4,600 and setting up for a weekly gain of more than 5.6%. FXStreet said XAU/USD was trading around $4,622, up over 2.3%, with recent Middle East developments and a softer US Dollar cited as key drivers.
FXStreet noted US economic data was mixed, with the S&P Global Services PMI in August coming in above estimates at 56.8, while the Manufacturing PMI slipped from 53.9 to 53.2, the lowest in five months. The outlet added that investors largely focused elsewhere, including the US Treasury's bond buyback plan and related commentary from Treasury Secretary Scott Bessent.
Bessent said the administration would increase its focus on fiscal consolidation, and he also indicated the government could expand Treasury buybacks, following plans to double purchases of longer-dated securities. FXStreet reported the US 10-year T-note yield rose about 0.8% to 4.75%, while the US Dollar Index was near 98.82.
On policy expectations, FXStreet said money markets priced a 60% chance the Federal Reserve would hold rates at its September meeting, down from 68% earlier, and showed roughly a 40% probability of a 25-basis-point hike. The article also cited Poland's central bank slowing Gold purchases to 7.8 metric tons in July and provided a technical outlook highlighting resistance levels at $4,650 and $4,700.
Latest closeGold $4,432.00 ▲1.6%|Dollar index 99.64 ▼0.3%