Gold Defies Rising Yields with Dollar's Soft Landing
Gold prices hovered around $4,400 an ounce on Thursday as a softer US dollar offset pressure from elevated Treasury yields. Spot bullion was little changed in Asian trading after gaining in the previous session.
The dollar remained close to a three-week low, helping bullion despite the 10-year Treasury yield trading around 4.84%, near its highest level since 2023. This mismatch between rising yields and a weak dollar is providing an important offset for gold, 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. A firmer core reading could strengthen the argument for another rate increase, while softer inflation would give policymakers more room to wait.