Gold prices traded little changed on Wednesday as investors assessed the impact of surging government bond yields and a firmer U.S. dollar against growing expectations that diplomatic negotiations could eventually ease tensions in the Iran conflict.
By 05:15 ET (09:15 GMT), spot gold was broadly flat at $4,480.57 per ounce, while gold futures declined 1.6% to $4,482.80 per ounce
Rising yields and stronger dollar pressure bullion Analysts at Phillip Capital said concerns remain that higher oil prices linked to the Iran conflict could trigger a new wave of global inflation and potentially force central banks to raise interest rates. Government bond yields have climbed sharply in recent sessions as a result. In particular, the yield on the 30-year U.S.
Treasury bond — often viewed as a key indicator of investor sentiment toward the economic outlook — rose to its highest level since the global financial crisis nearly two decades ago. Bond yields typically move inversely to prices. Higher borrowing costs generally reduce the appeal of non-yielding assets such as gold.