XAU/USD jumps 3.7% to a three-month high as falling US bond yields and a weaker Dollar lift bullion demand.
Gold (XAU/USD) climbed to $4,495, marking a 3.7% daily gain and its highest level since June 4. The rally follows a US Treasury buyback of long-dated bonds, pushing yields lower and weakening the Dollar.
The US 30-year yield fell over eight basis points to 5.20%, while the 10-year benchmark yield dropped nearly five basis points to 4.660%. Rising energy prices and Middle East tensions had previously driven yields higher, fueling inflation concerns.
The US Dollar Index (DXY) declined 0.80% to 98.85, further supporting gold’s advance. Markets now await the Federal Reserve’s meeting minutes for additional policy cues.