Rising oil prices and higher Treasury yields weigh on gold, capping its recovery near $4,000 per ounce despite geopolitical risks.
Gold prices retreated as surging oil prices reignited inflation fears, pushing Treasury yields and the US dollar higher. The metal struggled to hold gains despite geopolitical tensions, with investors focusing on the prospect of prolonged restrictive monetary policy.
Brent crude’s rise above $100 a barrel lifted bond yields and the dollar, pressuring non-yielding assets like gold. Recent strength in bullion was driven by dip-buying and short covering rather than safe-haven demand, following a sharp correction from earlier highs.
Gold now hovers near the $4,000 per ounce support level, with analysts warning that elevated oil prices and rising yields may limit further recovery. The near-term outlook remains tied to energy markets and interest rate expectations.