Gold prices edge higher as the U.S. dollar and Treasury yields move lower, providing strong support for the precious metal. As of early Wednesday, spot gold rose 0.2% to $3,330.99 per ounce. This comes after gold touched its lowest point in more than two weeks on Tuesday.
Meanwhile, U.S. gold futures climbed 0.3% to reach $3,345.00 per ounce. The dollar index hovered near its one-week low, increasing the appeal of dollar-priced gold to non-dollar buyers. At the same time, 10-year Treasury yields remained close to a one-month low.
Analysts attribute the uptick to several economic trends. According to market strategist Kelvin Wong, the technical decline of the dollar and falling yields have pushed gold upward. He noted that if the dollar continues to weaken, gold could experience a significant breakout.
Gold prices edge higher not only due to market dynamics but also because of easing tensions between Israel and Iran. A ceasefire brokered by U.S. President Donald Trump appears to be holding. Both countries have paused their air conflict, reducing global market fears for now.
However, in the United States, economic data is adding pressure. Consumer confidence dropped unexpectedly in June. Households are increasingly worried about job prospects. Rising uncertainty from new tariffs has only added to those concerns.
Federal Reserve Chair Jerome Powell addressed Congress this week. He said that higher tariffs may increase inflation this summer. This could also become a key factor in the Fed’s decision on rate cuts. Investors now expect a 60 basis point rate cut in 2025. Most believe the first cut could arrive by September.
Central banks are also showing renewed interest in gold. A report from the Official Monetary and Financial Institutions Forum revealed that one in three central banks plan to increase gold reserves. These banks collectively manage over $5 trillion.
Elsewhere in the market, silver rose 0.4% to $36.03 per ounce. Platinum declined 0.4% to $1,311.76. Palladium remained unchanged at $1,065.86. Gold prices edge higher amid economic shifts, softer yields, and geopolitical calm, reinforcing gold’s role as a stable investment.
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