Gold climbs toward $4,070 as falling yields support precious metals

Gold rose toward $4,070 an ounce as falling US Treasury yields and a weaker dollar boosted demand for the precious metal.

"Gold is a clear beneficiary today of the dual price action in oil and the US dollar, both of which have dropped on de-escalation hopes between the US and Iran," Tim Waterer, chief market analyst at KCM Trade, said.

COMEX gold futures for August delivery advanced $52, or 1.3%, to settle at $4,070.80 an ounce in New York. Spot gold traded around $4,075 after touching an intraday high above $4,110, recovering from last week's sell-off that followed a spike above $5,400 earlier in 2026. Silver also gained, with the September contract climbing nearly 5% to $58.90 an ounce.

The move came as a temporary pause in US-Iran hostilities sent crude oil prices sharply lower, easing inflation concerns and reducing expectations for aggressive Federal Reserve tightening. Brent crude fell as much as 10% before recovering to around $91.93 a barrel, while US crude traded near $84.77. The US Dollar Index weakened alongside Treasury yields, creating a favorable backdrop for dollar-denominated bullion. A weaker-than-expected US durable goods report — orders rose just 0.3% in June versus the 1.6% consensus — reinforced the narrative that economic momentum is cooling, which could keep the Fed cautious on rates.

Fed Decision in Focus

All eyes are now on Wednesday's Federal Reserve policy decision. Markets broadly expect rates to remain unchanged, but traders will scrutinize Chair Kevin Warsh's comments for any signal on the trajectory of monetary policy. A dovish tone could weaken the dollar further and extend gold's recovery, while a hawkish surprise may cap gains. Gold has support at $4,000 and resistance at $4,120, according to Anindya Banerjee, head of commodity and currency research at Kotak Securities. A sustained move above $4,200 would confirm the trend has turned from down to up, he said.

This article is for informational purposes only and does not constitute investment advice.