Economy News – Baghdad
Gold Prices Experience Slight Decline Amid Strong U.S. Dollar and Rising Treasury Yields
In the latest trading session, gold prices fell by 0.1 percent, reaching $2912.94 per ounce as of 02:32 GMT.
Gold futures in the United States also showed a minor decline of 0.1 percent, trading at $2927.20.
The ongoing uncertainties surrounding President Donald Trump’s proclamations regarding tariffs imposed on Europe, as well as delays in proposed tariffs for Canada and Mexico, continue to weigh on market sentiment.
Additionally, rising U.S. Treasury yields, particularly for 10-year bonds, have contributed to diminishing gold’s allure as a non-yielding asset.
Ilya Spavak, from an investment analysis platform, noted, “The slight appreciation of the dollar alongside the increasing returns of U.S. Treasury bonds is exerting a bit of pressure on gold prices during this session,” emphasizing that the long-term outlook for gold remains fundamentally sound.
As gold is traditionally viewed as a hedge against political instability and inflation, rising interest rates can reduce the appeal of non-yielding assets.
In related commodities, silver remained stable at $31.84 per ounce, while platinum and palladium experienced minor declines of 0.1 percent, trading at $964.95 and $926.03 per ounce, respectively.
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