XAU/USD climbs to one-week highs as softer US data and lower oil prices reduce Fed rate hike expectations.
Gold (XAU/USD) rallied to $4,161, breaching the $4,125 resistance level as a softer US Dollar and declining Treasury yields fueled demand. The move follows weaker-than-expected US job openings and factory orders data, which trimmed bets for a Federal Reserve rate hike in September to 58% from 67% earlier in the week.
The precious metal found additional support from a $10 drop in West Texas Intermediate (WTI) crude prices, easing inflation concerns. Technical indicators suggest a bullish bias, though a sustained break above $4,220 is needed to confirm a deeper correction toward mid-June highs.
Investors are monitoring Fed policy signals as gold holds near one-week peaks, with momentum indicators pointing to potential further gains.