Gold Rises to $3,413.30 Five-Week High on Weak Dollar, Rate Cut Optimism, Trade Talks, and Fed Chair Powell Comments

Gold prices rose over 1% to reach a five-week high, trading near $3,413.30 an ounce, driven by a weaker US dollar, easing yields, and optimism about potential Federal Reserve rate cuts. Positive US inflation data contributed to the rate cut expectations, while ongoing geopolitical risks and central bank buying provided additional support. However, mixed economic signals and uncertainty about the pace of Fed cuts have kept gold's upside potential in check, with prices remaining range-bound below $3,500 an ounce. Investor sentiment shifted toward safe-haven assets amid renewed risk-off concerns, particularly focusing on the progress of global trade negotiations and messaging from the Trump administration and Fed Chair Jerome Powell.