XAU/USD rises nearly 1% as suspected Yen intervention weakens the USD and softer US growth data fuels Fed easing bets.
Gold prices climbed 0.92% to $4,100 on Thursday, rebounding from a daily low of $4,028, as the US Dollar Index (DXY) fell nearly 0.90% to 99.90. The move followed speculation of Japanese intervention in foreign exchange markets, pushing the Yen to a near two-month high against the USD.
US inflation data met expectations, with the Core PCE Price Index easing to 3.3% YoY in June from 3.4%. Headline PCE slowed to 3.7% from 4.1%. However, Q2 2026 GDP growth missed forecasts, rising just 1.5% against an expected 2.1%, due to a widening trade deficit.
The Fed’s recent 9-3 vote to hold rates, with dissenters favoring a 25-basis-point hike, and softer economic data have fueled expectations of potential rate cuts, supporting gold’s rally to a five-day high of $4,126.