Latest News

Gold falls as Treasury yields and dollar rates tick higher

Gold falls as Treasury yields and dollar rates tick higher

Gold prices fell on Wednesday, as the dollar and U.S. bonds yields rose. However, concerns about the Trump Administration's new tariffs kept the price above the $3,000 level.

At 11:08 am, spot gold had fallen by 0.1% to $3,015.5 per ounce. ET (1508 GMT). U.S. Gold Futures dropped 0.1% to $3.022.10.

The dollar index increased by 0.1% against other currencies, causing gold to be more expensive for holders of other currencies, while yields on benchmark 10-year U.S. Treasury bonds inched up.

Gold remains supported by haven interest amid ongoing geopolitical and tariff risks. "New record highs will help me reach my next target of $3,150," says Peter Grant, senior metals analyst at Zaner Metals and vice president.

U.S. president Donald Trump announced on Monday that he would soon be imposing automobile tariffs. However, he indicated that some of the levies imposed by him on April 2 may not apply to all countries and that they could receive a break.

Edward Meir, Marex analyst, said: "If tariffs aren't as bad as people think they are, we might see a gold correction."

Investors who are worried about Trump's tariffs causing inflation and halting economic growth have sought refuge in gold, a safe-haven asset.

Gold, which is traditionally seen as an investment against inflation and uncertainty, has increased by more than 15 percent this year. It reached its highest level of $3,057.21 in March.

The market participants are now looking forward to the U.S. data on personal consumption expenditures due on Friday, which could provide more information on U.S. rates cut paths.

Grant stated that "tame PCE inflation will reinforce these dovish tendencies and continue to lift gold."

The Federal Reserve kept its benchmark rate unchanged last week, but said it may cut rates in the second half of this year. In a low-interest-rate environment, non-yielding gold tends to flourish.

Minneapolis Fed Bank President

Neel Kashkari

The Fed has said that despite the progress made in bringing down inflation, "we still have work to do" before inflation reaches the Fed's target of 2%.

Silver spot fell 0.2%, to $33.69 per ounce. Platinum remained steady at $976.70. Palladium increased 2% to $971.50.

(source: Reuters)