Forex
Gold Rises Amidst US-Iran Tensions and Softer Yields
The price of gold has increased despite a strong US dollar on Friday, as investors seek safe-haven assets amidst growing tensions between the US and Iran. The XAU/USD rose by 0.38% to $4,065.
Gold's advance is also attributed to softer US Treasury yields, with the 10-year benchmark note dropping three basis points to 4.667%. This development counters expectations of a rate hike by the Federal Reserve (Fed) next week.
The odds of a rate increase at next week's meeting are still high, with Prime Terminal data indicating an 84% chance for the September meeting. However, the chances of a rate hike next week have decreased to nearly 41%.