Gold rises as USD weakens; EUR/USD, AUD/USD benefit from dollar decline

Gold prices have climbed notably as the US dollar index retreats amid strengthening Federal Reserve rate cut expectations for 2025. The precious metal's advance coincides with broad dollar weakness that has lifted major currency pairs, with EUR/USD and AUD/USD posting gains while USD/CHF declines. Market participants are increasingly pricing in Fed easing, weakening the greenback's appeal and boosting non-yielding gold. The euro has capitalized on dollar softness despite mixed European economic signals, while the Australian dollar benefits from both USD weakness and commodity price support. Technical levels show gold testing recent highs with momentum indicators turning bullish. Currency traders are positioning for continued dollar pressure unless upcoming US economic data significantly alters the Fed's policy outlook. The interconnected moves across gold and major forex pairs highlight the dominant theme of dollar weakness driving current market dynamics.