Today’s Gold Prices Holding Steady Despite Geopolitical Tensions and US Treasury Yields Impact

Spot gold price was at $2,383.29 per ounce, while US gold futures dropped by 0.3% to $2,399.60 per ounce. Moreover, spot silver saw a rise of 0.3%, reaching $28.17 per ounce.

MCX gold rates saw a marginal decline on Tuesday due to a narrow trading range. The gold price fell by ₹30, or 0.04%, to ₹72,999 per 10 grams on MCX, reaching a peak of ₹73,315 during the day. In addition, silver prices closed down by ₹24, or 0.03%, at ₹83,480 per kg on MCX.

The Indian stock market and commodity market remained closed on Wednesday in observance of Ram Navami.

Read here: Stock market holiday: BSE, NSE to remain closed today for Ram Navami

Gold rates have climbed approximately 15% year-to-date, with the increase partly attributed to safe-haven demand amid heightened geopolitical tensions in the Middle East and Ukraine.

Impact of US Treasury Yields

Benchmark US 10-year Treasury yields stayed near five-month highs from the prior session. Interestingly, despite the surge in Treasury yields and the rise in the dollar following US Federal Reserve Chairman Jerome Powell’s remarks that diminished expectations for Fed rate cuts this year, gold prices endured.

Powell emphasized the necessity to give the Fed’s restrictive policy more time to take effect and highlighted the lack of progress made in inflation in recent months, despite positive US economic indicators.

Factors Affecting Gold Prices

Higher interest rates and a stronger dollar typically reduce the appeal of holding non-yielding gold. Nonetheless, gold remains in an upward trend for weeks. Factors such as substantial purchases by central banks, growing demand from Chinese consumers, and mounting geopolitical tensions help bolster gold prices.

(With inputs from Agencies)