Gold Market Update – Baghdad
On Wednesday, the price of gold experienced a decline, influenced by the rising strength of the US dollar and the yields of US Treasury bonds. Market observers continue to monitor the potential effects of newly imposed American tariffs.
During intraday trading, gold dropped by 0.3 percent, settling at $2909.86 per ounce as of 03:27 GMT. This follows a previous increase of approximately one percent on Tuesday, with US gold futures indicating a price of $2920.70.
Yields on standard US Treasury bonds for a ten-year duration rose from their lowest level in over four months, which was recorded in previous sessions, thereby diminishing the appeal of gold as a return-generating asset. Concurrently, the dollar index noted an increase.
Elia Spavak, head of global macroeconomic analysis, indicated that the rising yields of US Treasury bonds, alongside a mild recovery in the dollar, could exert downward pressure on gold prices.
This week marks the enforcement of new tariffs, initiated by President Donald Trump, which includes a 25% duty on imports from Mexico and Canada, along with a doubling of tariffs on Chinese goods to 20%. These measures have sparked trade tensions that could potentially hinder economic growth and lead to increased prices for consumers already grappling with prolonged inflationary pressures.
In response, both China and Canada announced their own set of tariffs targeting a range of American goods, while Mexico is anticipated to respond on Sunday.
Despite the uncertainty surrounding President Trump’s policy decisions, which have generally elevated perceptions of economic risk, gold has emerged as a favored safe-haven asset, appreciating by over 10% year-to-date.
In other precious metals, silver held steady at $31.93 per ounce, whilst platinum saw a slight decline of 0.2 percent to $958.41. Conversely, palladium recorded a gain of 0.4 percent, reaching $945.97.
For more updates, subscribe to our channel on Telegram