Gold prices climbed for the third consecutive day, approaching a two-week high as the US Dollar weakened amid reduced expectations for Federal Reserve rate hikes. According to FX Street, gold (XAU/USD) gained positive momentum on Friday, recovering from its lowest level since November 2025.
The US Dollar lost ground following disappointing domestic labor data released on Thursday, which eased market bets on further Fed tightening. FX Street noted that the USD/CHF pair traded around 0.8020 during Asian hours on Friday, extending losses for the second day in a row.
For Japanese investors, the softer dollar and rising gold prices come at a time when yen correlations remain sensitive to shifts in US monetary policy, influencing FX and commodity market dynamics in the region.