NEW YORK: Gold prices rose on Thursday as a softer U.S. dollar and lower Treasury yields supported demand for bullion, offsetting some pressure from improving risk sentiment tied to signs of diplomatic progress in the Middle East. Spot gold climbed 0.9% to $4,830.82 an ounce by 0455 GMT, while U.S. gold futures for June delivery gained 0.6% to $4,853.40. The advance kept bullion in focus after several volatile sessions driven by currency moves, oil prices and shifting interest rate expectations.
The dollar hovered near its weakest level in six weeks, making gold less expensive for buyers using other currencies. The dollar index stood at 97.969 and was on track for a second straight weekly decline after giving up most of the gains recorded during the recent conflict. Benchmark 10-year U.S. Treasury yields also eased 0.1%, reducing the opportunity cost of holding non-yielding assets such as gold and helping lift the metal even as broader market appetite for risk improved.
Markets were also tracking signs of a possible U.S.-Iran agreement and separate movement toward talks involving Israel and Lebanon, developments that tempered demand for traditional dollar safe havens. That mix left gold supported mainly by the currency and rate backdrop rather than by a broad flight to safety. Bullion has remained sensitive to swings in energy prices and bond markets since late February, when the conflict began to reshape inflation expectations and global positioning across commodities, currencies and equities.
Dollar weakness supports gold bullion
Gold has fallen more than 8% since the war began in late February as higher oil prices raised concern that inflation could stay elevated and keep interest rates higher for longer. That dynamic has complicated the metal’s role as an inflation hedge, because higher borrowing costs typically weigh on demand for assets that do not generate income. Thursday’s rebound showed how quickly bullion can recover when the dollar retreats and Treasury yields move lower at the same time.
U.S. rate expectations also remained a key part of the market narrative. Traders were pricing in a 29% chance of a quarter-point Federal Reserve rate cut this year, down from expectations before the war that pointed to two reductions in 2026. With fewer cuts priced in, gold has faced a less supportive monetary backdrop in recent weeks, making daily moves in the dollar and benchmark yields even more important for short-term price direction across bullion markets.
Precious metals move higher
The rise in gold was part of a broader advance across precious metals. Spot silver rose 2% to $80.61 an ounce, platinum gained 1.6% to $2,143.08, and palladium added 1.4% to $1,592.84. The synchronized move suggested investors were responding to the same combination of a weaker U.S. currency and softer yields rather than to any metal-specific supply disruption. It also underscored how quickly sentiment in commodities can shift when geopolitical headlines begin to ease and financial conditions loosen.
For bullion markets, Thursday’s session highlighted a clear chain of price drivers: a weaker dollar improved affordability outside the United States, lower yields reduced the cost of holding gold, and the easing of some war-related dollar demand altered the balance of safe-haven flows. With spot gold back near $4,831 an ounce and futures above $4,853, investors continued to treat the metal as highly responsive to changes in interest rate expectations, currency trends and Middle East developments. – By Content Syndication Services.