Gold Rebounds as Speculation of Yen Intervention Weakens Dollar

Gold bounced back from a three-day decline as the dollar sank and traders weighed the prospect of a fresh US military engagement in Iran.

Bullion rose as much as 2.2% to trade above $4,600, after falling 3.4% over the previous three sessions. The US dollar fell against a basket of other currencies, following speculation Japan is intervening in the foreign-exchange market to support the yen. A weaker greenback tends to boost gold, making it cheaper for buyers in other currencies.