XAU/USD rises 0.5% as softer U.S. economic data reduces expectations for a Federal Reserve rate hike this year.
Gold prices climbed toward $4,400 an ounce Monday, supported by a weaker U.S. dollar and declining Treasury yields. XAU/USD gained 0.5% to $4,399.44, while Gold Futures rose 0.4% to $4,455.90. Silver and platinum also advanced, with XAG/USD up 1.7% to $65.83 and XPT/USD rising 1.8% to $1,749.15.
The move follows weaker-than-expected U.S. economic data, including a drop in consumer sentiment and a sharp contraction in retail sales. These figures have eased pressure on the Federal Reserve to tighten monetary policy further, boosting gold’s appeal as a non-yielding asset.
The U.S. Dollar Index fell 0.2% to 99.49, making dollar-denominated metals cheaper for foreign buyers. Analysts note gold’s inverse relationship with Treasury yields, which have softened amid reduced rate hike expectations.