Gold Price News and Forecast: XAU/USD mildly bid in Asia as US treasury yields soften

FXStreet Team FXStreet

Gold's options market retains bullish bias despite sell-off in spot market

Gold fell by over 4.5% on Monday and could suffer deeper declines in the next few weeks as the US fiscal imprudence and hopes for coronavirus vaccine are likely to power treasury yields higher.

Even so, the options market retains the bullish bias with call options claiming a higher premium than puts, as indicated by the positive one-month risk reversals. The gauge of calls to puts is currently trading at 0.25, according to data source Reuters.

Gold mildly bid in Asia as US treasury yields soften

Gold, a zero-yielding safe-haven metal, is trading in the green, with the US bond yields pulling back from multi-month highs. At press time, the metal is changing hands near $1,870, representing a 0.22% gain on the day. The 10-year Treasury yield is hovering near 0.942%, down four basis points from the 4.5-month high of 0.98% reached Wednesday. However, the relief could be short-lived, as the US fiscal largesse could continue to power gains in yields and weigh over gold.

USD/JPY steadies below 160.50 as BoJ's Uchida speaks on outlook

USD/JPY holds its bounce below 160.50 in Europe trading on Tuesday, following the release of the Bank of Japan's monetary policy decision. The BoJ hiked the key rate by 25 bps to 1% as widely, providing little to no impetus to the Japanese Yen. BoJ Deputy Governor Uchida's press conference is doing little to lift the Japanese Yen.

AUD/USD keeps losses near 0.7050 after RBA's expected pause

AUD/ISD is holding moderate losses near 0.7050 in the European session on Tuesday. Traders are assessing the Reserve Bank of Australia's (RBA) expected interest rate hike pause decision and the Governor Bullock's remarks, with the Australian Dollar holding lower ground.

Gold holds gains above $4,300 amid cautious markets

Gold maintains a mildly positive tone, holding gains after rallying about 6.5% over the last few days. The precious metal's recovery, however, has lost steam after crossing the $4,300 line and remains practically flat as the initial enthusiasm about the US-Iran peace deal faded, with investors awaiting details of the agreement and monetary policy decisions by major central banks.

Solana's rebound gains momentum as ETF inflows return

Solana (SOL) steadies at $73 after posting three consecutive green candlesticks since the weekend. The recent recovery is supported by institutional demand, with spot Exchange Traded Funds recording net inflows of $2.81 million on Monday.

Kevin Warsh opens first Fed meeting June 16 with rate hold expected

Kevin Warsh was confirmed by the Senate in a 54-45 vote and sworn in as Federal Reserve Chair on 22 May 2026. The ceremony took place at the White House, with Supreme Court Justice Clarence Thomas administering the oath. The FOMC meeting on 16 and 17 June is his first as chair. The June meeting is also a quarterly projection meeting.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.