XAU/USD climbs 0.38% despite a firmer US Dollar, supported by declining Treasury yields and softer Fed rate hike expectations.
Gold prices advanced to $4,065, up 0.38%, as declining US Treasury yields countered a stronger US Dollar. The 10-year benchmark note fell three basis points to 4.667%, easing pressure on bullion despite Fed rate hike bets gaining traction in money markets.
The US Dollar Index (DXY) rose 0.60% for the week, trading at 101.46. Geopolitical tensions, including prolonged US-Iran conflict speculation, had limited impact on gold, with reports suggesting efforts to resume diplomatic talks. US economic data showed mixed signals, as Services PMI beat forecasts while Manufacturing PMI missed expectations.
Oil prices weighed on sentiment, with WTI crude down 3.83% at $88.79 but still poised for an 8.5% weekly gain. Market focus remains on Fed policy amid shifting rate expectations.