FX.co ★ 4T-X-Silver | XAU/USD, GOLD

During the Asian session on Thursday, gold (XAU/USD) encounters a new supply and returns to the previous day's lowest level since November 2025. As traders anticipate the release of the US Personal Consumption Expenditures (PCE) Price Index, the commodity maintains its bearish bias for the third day in a row. The important information will immediately impact the non-yielding bullion and determine the Federal Reserve's (Fed) policy course. Meanwhile, since the reopening of the Strait of Hormuz, the price of crude oil has dropped dramatically, easing concerns about inflation. Additionally, the black liquid fell to its lowest level since before the US-Iran conflict due to a temporary 60-day sanctions reprieve that permits the production, delivery, and sale of Iranian petroleum, crude oil, and petrochemical goods. As a result, traders should be forced to reduce their bets on increases in the Fed's interest rates as upstream pressure on consumer inflation is lessened. The ensuing drop in US Treasury bond yields prevents the US dollar (USD) from appreciating further, but it has no effect on the price of gold. Market players are still pricing in more than an 80% possibility that the US central bank would increase borrowing costs by the end of this year, according to CME Group's FedWatch Tool. This should help prevent any significant decline in the USD. Meanwhile, a global selloff in technology companies earlier this week continues to affect investors' mood, which should benefit the safe-haven dollar. This trend in turn supports the idea that the price of gold would continue to decline in the near future, implying that any potential recovery could be sold into and remain limited. Furthermore, acceptance below the psychological $4,000 threshold supports the pessimistic view of the precious metal.