From Investing.com: 2025-06-26 06:32:00

Gold prices rose by 0.35% on Wednesday due to a weaker dollar and declining Treasury yields, with investor sentiment shifting amid concerns over economic softness and future monetary easing. Geopolitical tension in the Middle East also supported the rally, as markets remained cautious about the ceasefire between Iran and Israel. Federal Reserve Chair Jerome Powell’s comments on inflation, along with soft US economic data, added to expectations of policy easing. XAU/USD rose during trading sessions, awaiting key macroeconomic data to influence gold’s trajectory.

The euro hit a three-year high against the US dollar, reaching approximately 1.16000, driven by easing geopolitical tensions, dovish signals from the Federal Reserve, and mounting fiscal concerns in the US. The euro’s rise reflected growing investor confidence in Middle East de-escalation, as US and Iranian officials plan to meet next week. Fed Chair Jerome Powell’s cautious stance on interest rates and the impact of trade tariffs highlighted the central bank’s dovish bias. EUR/USD continued rising during trading sessions, with focus shifting to US fiscal and trade policy developments.

The Australian dollar climbed towards 0.65100 on Wednesday, marking its fourth consecutive daily gain, supported by improving global risk sentiment. The US-brokered ceasefire between Israel and Iran supported market stability, while Fed Chair Jerome Powell’s comments on rate cuts tempered aggressive easing expectations. AUD/USD rose during trading sessions, with expectations of a rate cut by the Reserve Bank of Australia in July. Investors are now pricing in a total of 73 basis points of rate cuts by end-2025.



Read more at Investing.com: Gold Price Gains on Fed Dovishness, Geopolitical Risks, and US Dollar Weakness