Gold Holds Near $4,180 as US Yield Drop and Fed Caution Ease Rate Hike Fears

Gold prices steadied around $4,180 an ounce after US Treasury yields softened across the curve, with the 10-year note retreating from a multi-decade peak. Federal Reserve Vice-Chair Philip Jefferson indicated that the central bank needs more time to assess whether further interest-rate tightening is justified, pushing the market's estimate of an October hike down to about 27 percent. The yield drop was partly driven by worries over France's fiscal outlook, prompting a shift toward safe-haven assets.

At the same time, oil prices climbed on signs that the Middle East situation could worsen, as the Pentagon considered deploying an additional carrier strike group to the Persian Gulf. Analysts noted that softer inflation expectations and lower oil prices gave gold some breathing room, though high Treasury yields and a strong dollar continue to cap upside.