Pullback in the dollar and treasury yields provide support for the metal
25 June 2025 - 08:02
byAnushree Mukherjee and Anmol Choubey
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Bengaluru — Gold prices edged higher on Wednesday, supported by a pullback in the dollar and treasury yields, as markets monitored the fragile truce between Israel and Iran.
Spot gold was up 0.1% at $3,328.18/oz by 4.25am GMT, after hitting on Tuesday its lowest level in more than two weeks.
US gold futures rose 0.3% to $3,342.30.
The dollar index hovered near a one-week low, making greenback-priced bullion more attractive for other currency holders. The benchmark 10-year treasury yields remained near a more than one-month low.
“The technical selling of the dollar and weaker US treasury yield have benefited gold prices,” Oanda senior market analyst Kelvin Wong said.
A potential catalyst for a gold breakout could be further weakness in the dollar, renewed focus on the US fiscal deficit, and tariff policy, especially as Iran-Israel tensions ease, Wong said.
The ceasefire brokered by US President Donald Trump between Iran and Israel appeared to be holding on Wednesday, a day after both countries signalled that their air conflict had ended, at least for now.
US consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labour market conditions were softening amid rising uncertainty from Trump’s tariffs.
Higher tariffs could begin raising inflation this summer, a period that will be key to US Federal Reserve’s consideration of possible rate cuts, Fed chair Jerome Powell told members of Congress on Tuesday.
Fed funds futures traders are now pricing in 60 basis points of rate cuts for 2025, with the first move expected to come in September.
According to a report by the Official Monetary and Financial Institutions Forum, one in three central banks managing a combined $5-trillion planned to increase exposure to gold over the next one to two years, the highest in at least five years.
Elsewhere, spot silver was up 0.1% at $35.95/oz, platinum fell 0.2% to $1,314.75, while palladium was down 0.4% at $1,062.24.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold firmer as traders focus on Israel-Iran truce
Pullback in the dollar and treasury yields provide support for the metal
Bengaluru — Gold prices edged higher on Wednesday, supported by a pullback in the dollar and treasury yields, as markets monitored the fragile truce between Israel and Iran.
Spot gold was up 0.1% at $3,328.18/oz by 4.25am GMT, after hitting on Tuesday its lowest level in more than two weeks.
US gold futures rose 0.3% to $3,342.30.
The dollar index hovered near a one-week low, making greenback-priced bullion more attractive for other currency holders. The benchmark 10-year treasury yields remained near a more than one-month low.
“The technical selling of the dollar and weaker US treasury yield have benefited gold prices,” Oanda senior market analyst Kelvin Wong said.
A potential catalyst for a gold breakout could be further weakness in the dollar, renewed focus on the US fiscal deficit, and tariff policy, especially as Iran-Israel tensions ease, Wong said.
The ceasefire brokered by US President Donald Trump between Iran and Israel appeared to be holding on Wednesday, a day after both countries signalled that their air conflict had ended, at least for now.
US consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labour market conditions were softening amid rising uncertainty from Trump’s tariffs.
Higher tariffs could begin raising inflation this summer, a period that will be key to US Federal Reserve’s consideration of possible rate cuts, Fed chair Jerome Powell told members of Congress on Tuesday.
Fed funds futures traders are now pricing in 60 basis points of rate cuts for 2025, with the first move expected to come in September.
According to a report by the Official Monetary and Financial Institutions Forum, one in three central banks managing a combined $5-trillion planned to increase exposure to gold over the next one to two years, the highest in at least five years.
Elsewhere, spot silver was up 0.1% at $35.95/oz, platinum fell 0.2% to $1,314.75, while palladium was down 0.4% at $1,062.24.
Reuters
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