XAU/USD rises 0.58% as declining Treasury yields and reduced Middle East tensions boost demand for bullion.
Gold prices advanced 0.58% to approach $4,070 as US Treasury yields declined, enhancing the appeal of non-yielding assets. The move follows a temporary pause in US-Iran tensions after Washington halted attacks on Tehran, while President Trump signaled potential negotiations.
Prior to this gain, gold had traded sideways amid mixed signals on geopolitical risks and Federal Reserve policy expectations. The 10-year Treasury yield fell below 4.2% earlier in the session, providing additional support for XAU/USD.
Markets are monitoring further developments in US-Iran relations and upcoming economic data for clues on Fed rate cuts.