Gold Falls Slightly as Dollar Strengthens and Bond Yields Rise
Gold prices moved lower on Thursday (May 21), influenced by a stable dollar and high government bond yields, although hopes for a resolution to the US-Iran conflict continued to support the market. Spot gold fell 0.2% to $4,536.09 per ounce, while gold futures fell 0.5% to $4,536.01 per ounce.
Optimism over a possible deal to reopen the Strait of Hormuz impacted sentiment, after US President Donald Trump said negotiations were in their final stages, although he warned of the potential for further escalation if a deal fails. Iran stated it was reviewing the latest US position on resolving the conflict.
Brent oil prices fell to $103.97 per barrel, but remained well above the pre-war level of $70 per barrel. A sustained surge in energy prices could drive global inflation and force central banks to raise interest rates, thereby pressuring the performance of non-yielding assets like gold.
Some investors' shift to the US dollar as a safe-haven asset also reduced gold's appeal. Other precious metals declined; platinum fell 0.3% to $1,949.70 per ounce, and silver fell 0.6% to $75.41 per ounce.
Variables to monitor: developments in US-Iran negotiations, oil prices, bond yields, and US dollar movements. (arl)*
Source: Newsmaker.id
