The US Dollar Index (DXY) experienced a drop from its 10-week high and fell to an intraday low of 104.00. Despite this, the US 10-year Treasury yields remain low, around 3.68% at present, while the two-year counterpart also remains low near 4.45% after a 12-day uptrend.
It's worth noting that recent data in the US hasn't supported the Federal Reserve's hawkish bets, leading to a rally in XAU/USD.
However, Richmond Fed President Thomas Barkin believes that rate hikes are limiting demand.
As such, the 1975 area needs to be re-examined, and my first target is to place a buy order around 1950.