Gold Gains on Weak US Data and Geopolitical Risk

Gold prices gained momentum as a series of soft US economic data reports, including jobs and retail sales, dampened expectations for further Federal Reserve rate hikes. This sentiment contributed to the US Dollar Index sagging toward two-month lows, providing a tailwind for the precious metal. Concurrently, safe-haven demand was supported by elevated geopolitical risk in the Middle East, with focus on the Strait of Hormuz and an expiring agreement with Iran. fxstreet +4

US Bond Yields Rise Despite Dollar Weakness

The US Treasury market saw significant movement as yields advanced, with the 30-year bond yield surging to its highest level since 2007. This rise in yields occurred despite disappointing US retail sales data from the previous week, which had otherwise contributed to broad US Dollar weakness. fxstreet +1

China Slowdown and FX Market Volatility

Concerns over global growth have been amplified by recent data from China, which showed weaker industrial production and record-low fixed asset investment, pointing to insufficient domestic demand. This slowdown weighed on commodity-linked currencies like the New Zealand Dollar, while other major currencies, including the Euro and British Pound, experienced volatile sessions against a fluctuating US Dollar. fxstreet +4