XAU/USD falls to session lows after USD recovers from a 30-day trough following Japanese forex market intervention.
Gold prices slid nearly 1.5% on Friday as the US Dollar regained strength after Japanese authorities intervened in currency markets. The rebound in the USD, measured by the DXY index, followed a sharp decline to a 30-day low, pressuring XAU/USD below the $4,100 mark.
Prior to the drop, gold had traded near record highs, supported by expectations of Federal Reserve rate cuts. The yen intervention disrupted short-term USD momentum, reversing some of the greenback’s losses and weighing on dollar-denominated commodities.
Market reaction saw gold retreat from intraday peaks, with traders reassessing the USD’s trajectory amid shifting forex dynamics.