Gold Recovers on Broad US Dollar Weakness

Gold prices rebounded from a multi-week low, with the move higher attributed to a weaker US Dollar. The dollar's decline was broad-based, as currencies including the Euro, Australian Dollar, and New Zealand Dollar posted gains against it amid shifting geopolitical headlines and a pending leadership transition at the Federal Reserve.

Easing US-Iran Tensions Weigh on the Dollar

Market sentiment was shaped by an apparent de-escalation in US-Iran tensions, which contributed to the US Dollar's decline. Reports indicated the US President halted a planned military strike and also expressed a willingness to reach a deal that would prevent Iran from acquiring nuclear weapons.

Economic Data and Central Bank Outlook in Focus

Markets are monitoring central bank developments, including an upcoming leadership change at the US Federal Reserve and concerns from the Reserve Bank of Australia that rising energy costs could accelerate inflation. Broader economic data presented a mixed picture, with strong foreign inflows into US Treasuries contrasting with weak domestic demand in China and pressure on Asian economies from higher US yields.