XAU/USD climbs 1.5% to $4,146 amid a 0.07% drop in the US Dollar Index, defying geopolitical tensions and rising oil prices.
Gold prices surged 1.5% to $4,146, marking a two-week high as the US Dollar Index fell 0.07% to 101.12. The rally broke a key resistance trendline, with XAU/USD rebounding from a daily low of $4,076 to surpass $4,100.
The move occurred despite heightened US-Iran tensions and a 6% spike in WTI crude to $86.80 per barrel. The US 10-year Treasury yield rose nearly three basis points to 4.654%, while Fed rate cut expectations for July softened, with odds dropping to 65% from 78% a day earlier.
Bullion’s gains defied traditional correlations, as the dollar’s decline outweighed risks from rising yields and oil prices. Market sentiment remained neutral, though buyers capitalized on the dip to push prices higher.