Spot Gold off 1-week low as US Dollar, Treasury yields drop

Key moments

Having briefly touched a one-week low on Tuesday, Spot Gold bounced back above the $2,900 level, as the US Dollar and US Treasury yields retreated ahead of key macro data releases.

“U.S. dollar and Treasury yields are lower, which is helping gold catch a bit of support… The overall uptrend remains intact and the path of least resistance favors the upside,” Ilya Spivak, head of global macro at Tastylive, was quoted as saying by Reuters.

“Prices have been stable in a range between about 2,830 and 2,960 for the past four weeks… We would need to see a convincing break above or below these boundaries to conclude that some sort of lasting directional move is resuming.”

The US Dollar Index hovered just above a four-month low and the yield on 10-year US Treasuries dropped to a one-week low of 4.152% on macroeconomic concerns.

Recession fears intensified after US President Trump over the weekend refused to rule out a potential downturn, as he described the current economic environment as a “period of transition.”

A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.

Investor focus now sets on the US job openings, CPI inflation and producer price inflation figures this week, which may provide more clues over the US interest rate cut trajectory.

Job openings dropped by 556,000 to 7.6 million in December, thus, signaling a gradual labor market cooling. The report for January is due out at 14:00 GMT.

Annual headline consumer inflation in the US probably eased to 2.9% in February, according to market consensus, from 3% in January – the highest rate since June 2024.

Annual core CPI inflation probably eased to 3.2% in February from 3.3% in January. The official CPI data will be released tomorrow.

Spot Gold was last up 0.40% on the day to trade at $2,901.05 per troy ounce.

Gold Futures for delivery in April were up 0.14% to trade at $2,903.59 per troy ounce.