Gold Seeks Safe Haven as Dollar Weakness Boosts Prices Near $4,420

Gold prices rose on Thursday to near $4,420 an ounce as a weaker U.S. dollar offset pressure from higher Treasury yields and Middle East tensions. The precious metal gained 0.4% to $4,418.87 an ounce, while Gold Futures climbed 0.03% to $4,461.82.

The softer dollar provided support for gold ahead of key inflation data that could shape expectations for the Federal Reserve's next interest-rate move. Investors have been reassessing the outlook for Fed policy, weighing gold's longer-term appeal as a portfolio hedge against near-term pressure from higher bond yields and worsening tensions in the Middle East.

Treasury yields remain a concern, with the government's latest plan to buy up to $6 billion of longer-dated debt failing to sway the bond market. Higher yields can weigh on gold because bullion pays no interest. Oil prices also remain a worry, reaching $100 a barrel for the first time since July.

The conflict in the Middle East has been ongoing for seven months, with Iran warning it is prepared for a more intense conflict if the United States continues attacks on its territory and infrastructure. Markets are now focused on Thursday's U.S. producer price index and Friday's consumer price index ahead of the Fed's policy meeting.