Gold Prices Slip as Yields and US Dollar Strengthen
Gold prices fell to $4,528.03 today as higher yields and a firm dollar weighed on the metal. U.S.-Iran talks limited losses while markets monitor Fed policy.
Gold fell 0.3% to $4,528.03 per ounce on May 21 as rising Treasury yields and a stronger dollar pressured the metal. U.S. gold futures for June delivery fell 0.1% at $4,528.90. The decline follows a 1% gain on May 20 after bullion hit its lowest price level since March 30.
The U.S. 10-year Treasury yield rose 1 basis point to 4.578%, continuing a medium-term uptrend that began in early March. Inflation expectations, rising yields, and a stronger dollar are weighing on the metal. Analyst Soni Kumari from ANZ said these factors will continue to limit upside until there is clarity on how long the geopolitical conflict persists. Gold has declined more than 14% since the war began in late February as interest rate expectations shifted.
