Gold Prices Steady in Asian Trade as Strong Dollar and Rising Yields Weigh on Bullion

Gold prices remained largely steady during Asian trading on Friday after posting losses in the previous session, as a stronger U.S. dollar and rising Treasury yields continued to pressure the precious metal. Despite heightened geopolitical tensions in the Middle East, bullion struggled to gain momentum and remained on track for a notable weekly decline.

Spot gold was trading nearly unchanged at $5,080.37 per ounce, while U.S. gold futures rose 0.3% to $5,091.04 in early trading hours. The yellow metal dropped about 1% in the previous session and is set to record a weekly loss of nearly 4%, reflecting ongoing pressure from macroeconomic factors such as a resilient dollar and shifting expectations around U.S. interest rates.

The U.S. dollar has strengthened this week, making gold more expensive for holders of other currencies and limiting demand for the safe-haven asset. At the same time, U.S. Treasury yields have climbed, reducing the appeal of non-yielding assets like gold. Investors have also been reassessing expectations for Federal Reserve policy, with markets increasingly betting that interest rate cuts may be delayed.

Geopolitical tensions remain elevated as the conflict in the Middle East entered its seventh day, involving escalating hostilities between the United States, Israel, and Iran. Missile strikes and retaliatory attacks have intensified across the region, raising concerns about broader instability and potential disruptions to global energy supplies. U.S. President Donald Trump’s remarks about wanting a role in determining Iran’s future leadership after the conflict have further highlighted the political uncertainty surrounding the situation.

Oil prices have surged in response to the conflict, fueled by fears that key energy infrastructure and major shipping routes in the Gulf could be affected. The rise in crude prices has sparked renewed concerns about global inflation, complicating the outlook for central banks worldwide, including the U.S. Federal Reserve. Higher energy costs often feed into inflation, which could make policymakers more cautious about cutting interest rates in the near term.

Market participants are now closely watching the U.S. February nonfarm payrolls report, scheduled for release later on Friday. The employment data is expected to provide fresh insights into the strength of the U.S. labor market and could influence expectations for future Federal Reserve monetary policy. A stronger-than-expected jobs report may reinforce the view that the Fed has room to keep interest rates higher for longer.

While gold typically benefits from geopolitical uncertainty and expectations of lower interest rates, the current environment of a strong dollar and rising bond yields has limited its upside potential this week.

Among other precious metals, silver prices increased 0.5% to $82.68 per ounce, while platinum climbed 0.7% to $2,134.76 per ounce, reflecting modest gains across the broader precious metals market.