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Gold rebounds but remains capped as oil and Treasury yields rise
XAU/USD is around $4,125 after bouncing from $4,066, while crude rises on reports of attacks tied to Middle East tensions.
Gold prices ticked up on Thursday, with XAU/USD trading around the $4,125 area after rebounding from two-month lows near $4,066 on Wednesday, according to FXStreet.
FXStreet said golds upside attempts have been limited as precious metals face pressure from a sharp rise in oil amid escalating hostilities in the Middle East, and from US long term Treasury yields moving toward multi decade highs.
The outlet linked the oil increase to reports of a fresh round of attacks by Houthi militias on Saudi Arabian airports that reportedly killed three people, with Saudi Houthis tensions having risen over recent weeks.
FXStreet added that higher energy prices are pushing Treasury yields higher, reinforcing market expectations that the Federal Reserve may need to keep raising borrowing costs, a dynamic that has supported the US dollar and weighed on gold.
Latest closeGold $4,150.40 ▼0.3%