Gold Soars to Seven-Week High as Dollar Weakens and Rate-Hike Expectations Fade

Gold has reached its highest level in seven weeks, surpassing $4,288 per ounce as investors seek safe-haven assets amid a weakening US dollar and fading expectations for Federal Reserve rate hikes. The precious metal's four-day rally was driven by a softening US Dollar Index and falling Treasury yields, making dollar-denominated gold cheaper for holders of other currencies.

Tony Sycamore, a market analyst at IG, attributed the rally to progress in US-Iran diplomatic talks mediated by Oman. He noted that a potential deal could ease energy-price and inflation pressures, further supporting gold.

The rally has lifted gold's year-to-date return to roughly 10% in Turkish lira terms, although dollar-denominated gold still carries a marginal loss for the year. Market analysts are now closely watching the US nonfarm payrolls report due Friday, which could either validate or upend the current rally.