Gold Holds Firm at $4,400 Amid Weaker Dollar and Elevated Yields

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.

Normally, rising Treasury yields would be a clear negative for bullion because investors can earn more from government debt.

However, this week the dollar failed to strengthen alongside yields.

Danske Bank strategist Filip Andersson noted that expectations for a Bank of Japan rate increase, combined with the possibility that the Fed stays on hold, have helped push the dollar lower against the yen.

This currency weakness has provided an important offset for gold because it makes dollar-priced bullion cheaper for buyers using other currencies.