Last Updated on 03/09/2026
- Gold moves higher as a weaker US Dollar offsets the impact of elevated Treasury yields.
- Speculation over possible Yen intervention weighs on the Greenback despite strong bond yields.
- Concerns about potential strikes on Iran keep Oil near $90, reinforcing inflation pressures.
Gold (XAU/USD) surged more than 1% on Wednesday, supported by a weaker US Dollar amid speculation that Japanese authorities may have stepped into currency markets to strengthen the Japanese Yen (JPY). Meanwhile, US Treasury yields remained elevated despite disappointing US employment data. At the time of writing, gold was trading around $4,373.
The Yen gained broadly against major currencies, fueling market chatter about a possible FX intervention or rate-check operation by Japanese officials. However, authorities have not confirmed any such actions.
Gold Benefits from Dollar Weakness Despite Higher Yields
The precious metal continued to attract buyers even as the benchmark US 10-year Treasury yield hovered near 4.79%, largely unchanged from Tuesday’s close. At the same time, the US Dollar Index (DXY) slipped 0.06% to 99.59.
Adding to market uncertainty, US President Donald Trump stated that Washington is “prepared to do another attack on Iran,” although he suggested any military action would not last long. His comments helped extend gains in oil markets, with WTI crude edging up to $90.86 per barrel.
Despite rising energy prices, Treasury yields showed little reaction, as investors viewed higher oil costs as a factor that could keep inflation elevated and support higher interest rates for longer.
The Federal Reserve’s latest Beige Book indicated modest growth in economic activity since early July, with slight improvements in employment conditions. Inflation pressures remained present, as prices increased across eight Fed districts.
Labor market data released Wednesday showed private-sector hiring slowed more than expected in August. According to the ADP Employment Report, payrolls rose by just 38,000, below the 47,000 forecast and down from July’s 46,000 increase.
New York Fed President John Williams noted that elevated bond yields reflect the strength of the US economy rather than rising inflation expectations. He emphasized that inflation remains under control and that current monetary policy is appropriately positioned to guide inflation back toward the Fed’s 2% target.
Market participants are now focused on upcoming US economic releases, including the ISM Services PMI and Friday’s closely watched Nonfarm Payrolls report.
Gold Technical Outlook: Focus Turns to $4,400
Gold has climbed back above the $4,300 level and regained the 100-day Simple Moving Average (SMA) near $4,361, a development that could support additional upside. However, near-term momentum indicators still suggest caution.
The Relative Strength Index (RSI) remains below the neutral 50 mark, signaling that sellers continue to hold a slight advantage and that downside risks have not completely faded.
If bearish pressure resumes, initial support is seen at $4,300, followed by the 50-day SMA around $4,223. A deeper decline could expose the key $4,200 support zone.
On the upside, a move above $4,400 would strengthen the bullish case and open the door toward $4,450, followed by the psychologically important $4,500 level. A sustained breakout beyond that area could target the 200-day SMA near $4,531 and potentially extend toward $4,600.
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