Gold prices climb as US Treasury yields and the dollar weaken, with markets pricing a 55% chance of a September Fed rate cut.
Gold prices jumped sharply as easing Middle East tensions and softer US Treasury yields weighed on the dollar. The move accelerated after breaking key resistance levels, triggering technical buying and short covering.
Markets now price a 55% probability of a Federal Reserve rate cut in September, down from 66% a week ago. Lower real interest rates and reduced geopolitical risks supported the rally, while central bank demand, including from the Bank of Korea, added modest support.
Near-term momentum remains mildly bullish, with resistance at 4333 and 4393 and support at 4160 and 4077. Friday’s US payrolls report will be critical in determining whether the decline in yields and dollar can sustain gold’s breakout.