Gold Trades Above $4,500 as Dollar Weakens and Treasury Moves Boost Rally
· Business · Investing.com India, LiveMint
Gold prices held above $4,500 per ounce, lifted by a softer U.S. dollar and shifting Federal Reserve rate-cut expectations following this week's Treasury auction results. Benchmark 10-year yields eased, reducing the opportunity cost of holding non-yielding gold and drawing fresh buying from exchange-traded funds. The rally gained further traction after a key technical support level around $4,475 held, clearing the way for a retest of recent highs near $4,530. Market participants are now pricing in roughly 60 basis points of rate cuts by year-end, up from 40 basis points a week earlier, keeping downward pressure on the dollar index. A sustained break above $4,550 could push gold toward its all-time peak of $4,580 reached in April 2025.
Why it matters
The higher gold price raises import costs for Indian jewelers and retail buyers, who may delay purchases until a clearer price trend emerges, affecting demand in the world's second-largest gold consumer market. Weaker U.S. yields and dollar also lift the rupee-denominated appeal of gold as an alternative investment for domestic savers.
Read the original report — Investing.com India
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