Gold Holds Firm at $4,400 Amid Dollar Weakness

Gold prices hovered around $4,400 an ounce on Thursday as a softer US dollar offset pressure from elevated Treasury yields. The 10-year Treasury yield traded around 4.84%, near its highest level since 2023.

Danske Bank strategist Filip Andersson said that expectations for a Bank of Japan rate increase combined with the possibility that the Fed stays on hold have pushed the dollar lower against the yen, making dollar-priced bullion cheaper for buyers using other currencies.

Markets are assigning roughly a 60% probability to a quarter-point Fed increase next week, leaving gold unusually sensitive to even a modest inflation surprise. August producer prices are due Thursday at 8:30 am ET, followed by consumer prices on Friday at the same time.