Today’s Gold Rates Remain Stable Despite Geopolitical Tensions; Impact of Rising US Treasury Yields Noted

Gold prices remained steady on Wednesday, driven by safe-haven demand amid escalating geopolitical tensions in the Middle East. Spot gold price stood at $2,383.29 per ounce, while US gold futures slipped by 0.3% to $2,399.60 per ounce. At the same time, spot silver rose by 0.3% to $28.17 per ounce.

In the Indian market, the MCX gold rate closed marginally lower on Tuesday, with a decrease of ₹30, or 0.04%, to ₹72,999 per 10 grams. Silver price also witnessed a decline of ₹24, or 0.03%, closing at ₹83,480 per kg on MCX. The stock and commodity markets in India remained closed on Wednesday due to the observance of Ram Navami.

The rise in gold prices this year, around 15% so far, has been attributed to safe-haven demand amid increasing tensions in the Middle East and Ukraine. Despite benchmark US 10-year Treasury yields reaching five-month highs, the yellow metal prices have remained resilient. Federal Reserve Chairman Jerome Powell’s statements have tempered expectations for rate cuts this year, leading to a surge in Treasury yields and the US dollar.

Although higher interest rates and a stronger dollar typically lessen the appeal of gold, the precious metal remains in an upward trend due to robust buying by central banks, heightened demand from Chinese consumers, and ongoing geopolitical uncertainties. The overall sentiment surrounding gold prices continues to be supported by these factors, emphasizing the metal’s status as a safe-haven asset amidst global uncertainties.