XAU/USD falls 1.5% to $4,045 amid rising US yields and Fed rate hike dissent, erasing weekly gains.
Gold prices dropped nearly 1.5% to $4,045 as US Treasury yields surged, offsetting a modest recovery in the US Dollar. The 10-year Treasury note yield rose 7.5 basis points to 4.745%, pressuring bullion despite a softer USD performance.
The decline follows weaker-than-expected Q2 2025 US GDP growth of 1.5% and a slight dip in Core PCE inflation to 3.3% YoY. However, dissenting Fed officials, including Dallas Fed’s Lorie Logan, signaled concerns over persistent inflation risks, supporting higher rate expectations.
XAU/USD is set to close the week down 0.11%, failing to breach the $4,100 level as investors weigh the Fed’s policy outlook against economic data.