XAU/USD rises 1.24% to $4,076 as falling US yields and a softer dollar boost demand for bullion.
Gold prices surged to a two-day high of $4,096 on Friday, trading at $4,076 for a 1.24% gain. The rally followed a decline in US Treasury yields, which dropped nearly 14 basis points since Wednesday, and a weaker US Dollar Index (DXY), down 0.10% at 101.33.
The move came as investors scaled back hawkish bets on the Federal Reserve after the US 10-year yield fell to 4.374%. Core PCE inflation, the Fed’s preferred gauge, rose 3.4% YoY in May, matching expectations but remaining above the central bank’s 2% target.
Fed officials, including Minneapolis President Neel Kashkari and Chicago’s Austan Goolsbee, signaled concerns over persistent inflation, though market pricing reflected reduced tightening expectations.