Gold Gains as Softer Dollar, Lower Treasury Yields Lift Prices
Gold prices rose above $4,100 per ounce on Thursday after a weaker US dollar and lower Treasury yields helped the metal recover from three straight daily losses. The gain remained restrained as renewed conflict between the United States and Iran increased inflation concerns, strengthening expectations that the Federal Reserve could raise interest rates despite softer Treasury yields. Iran renewed threats to close the Strait of Hormuz after fresh attacks, while President Donald Trump warned of stronger retaliation, supporting the US dollar as investors reduced risk exposure. "Hard assets, from gold and silver to copper, sold off on Wednesday as crude oil reclaimed its role as a central driver of cross-asset pricing amid renewed US-Iran tensions," wrote Saxo Bank in a Thursday note. The US Dollar Index traded near 100.90, while markets assigned a 63% probability of a September rate increase. At the time of writing, XAU/USD was trading at $4,123, up 1.15%.
Gold prices rose above $4,100 per ounce on Thursday after a weaker US dollar and lower Treasury yields helped the metal recover from three straight daily losses.
The gain remained restrained as renewed conflict between the United States and Iran increased inflation concerns, strengthening expectations that the Federal Reserve could raise interest rates despite softer Treasury yields.
Iran renewed threats to close the Strait of Hormuz after fresh attacks, while President Donald Trump warned of stronger retaliation, supporting the US dollar as investors reduced risk exposure. "Hard assets, from gold and silver to copper, sold off on Wednesday as crude oil reclaimed its role as a central driver of cross-asset pricing amid renewed US-Iran tensions," wrote Saxo Bank in a Thursday note.
The US Dollar Index traded near 100.90, while markets assigned a 63% probability of a September rate increase.
At the time of writing, XAU/USD was trading at $4,123, up 1.15%.