Forex
Gold Rebounds as Weaker US Dollar Fails to Spark Stronger Rally
The price of gold has rebounded after slipping to a nearly four-week low on Wednesday, as a sharp rally in the Japanese Yen weighed on the US Dollar.
The Yen's strength has pushed the US Dollar down by over 1.50%, with USD/JPY trading near 156.35, its lowest level since August 3.
A weaker US Dollar is generally positive for gold, but several near-term headwinds remain in place to limit a stronger recovery in the yellow metal.
Elevated bond yields and hawkish Federal Reserve expectations also pose challenges to gold's performance, as it typically does better when interest rates are low.