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Gold rises to fresh mid-May high as USD softens on bond yield pullback
Gold moved above $4,650, helped by a weaker US dollar near a three-month low and expectations that the Fed will likely hold after September.
Gold prices extended last week's breakout, climbing above $4,650 during the Asian session on Monday to reach a fresh high since mid-May, according to FXStreet.
FXStreet linked the move to US Dollar weakness near an over three-month low, driven by receding bets for an immediate Fed interest rate hike and softer US Treasury bond yields that tend to support non-yielding bullion.
The outlook for policy is shifting toward a hold at the upcoming September 15 to 16 FOMC meeting after cooler July inflation data, while markets remain focused on the US Personal Consumption Expenditures Price Index due on Wednesday.
FXStreet also pointed to potential risk support for the dollar, noting US Treasury Secretary Scott Bessent is expected to announce sanctions related to Iran, amid warnings from Iranian officials about halting oil exports through the Strait of Hormuz if economic war continues.
Latest closeGold $4,432.00 ▲1.6%