Gold rally fades as oil prices rebound and Treasury yields rise ahead of US payrolls report

Gold prices surged to a two-week high of $4,764.01 driven by weaker US dollar and falling oil prices amid hopeful US-Iran peace talks. However, gains faded as oil prices rebounded above $105 per barrel and Treasury yields rose following renewed uncertainty in the negotiations. Traders are now cautious ahead of Friday's US non-farm payrolls report, which could influence Federal Reserve rate decisions and gold's next move. China's steady gold buying continues to provide underlying support to the market despite short-term volatility.