Gold Rises to $4,070 as US Treasury Yields Fall

The price of gold has risen to around $4,070 as US Treasury yields fall and hopes for de-escalation in tensions between the US and Iran boost investor confidence.

The upward movement in gold prices comes despite the fact that the precious metal is nearly back to its previous level of $4,050, which could potentially open the door for further downside. However, sentiment has improved as news that a Chinese state-backed firm is producing chipmaking machines pushed US equities lower.

The pause in US attacks on Iran and President Donald Trump's statement that 'there's a chance we can make a deal with Iran' have added to the positive mood in markets. The Durable Goods Orders in June improved, but fell short of estimates.

Falling US Treasury yields, which have edged lower by 3.5 basis points to 4.645%, are also supporting gold prices. As the US 10-year T-note falls, the Greenback has turned green, as measured by the US Dollar Index (DXY).