Gold Climbs Above $4,500 as Dollar and Yields Decline

In early Asian trading on Thursday, spot gold was trading near $4,516.65, having earlier risen to around $4,520, its highest level since early June. A weaker dollar and a pullback in U.S. Treasury yields were the direct drivers behind this rise in gold prices.

**Weaker Dollar Provides Core Support**

After the U.S. Treasury stepped in to support the bond market, the dollar index came under pressure, making dollar-denominated gold more attractive to buyers. Market reports indicate that U.S. authorities have recently shifted their stance on a strong dollar, leaning toward a weaker currency to ease debt and trade pressures. This policy shift is viewed by some analysts as an important backdrop for gold's medium-term strength.

**Falling Yields Lower Holding Costs**

Gold itself yields no interest, so the higher U.S. Treasury yields are, the greater the opportunity cost of holding gold. The recent pullback in Treasury yields from higher levels has directly eased pressure on gold prices. Earlier, a U.S. 30-year Treasury auction had demanded extremely high yields, raising market concerns about debt risks; the Treasury's intervention in the bond market has eased the upward momentum in yields, creating a more favorable interest-rate environment for gold.

**Outlook: Focus on Policy and Data Rhythm**

According to the latest weekly survey from Kitco News, Wall Street professionals have turned notably more optimistic on gold, with a majority of the 10 analysts surveyed expecting gains. However, some technical analysts caution that whether gold can hold above $4,500 remains to be seen; if the dollar strengthens again or yields rise, short-term profit-taking pressure could emerge. With gold currently near its highest level since early June, the validity of the directional breakout awaits further confirmation from upcoming data and policy signals.