Gold Prices Rise as Dollar Weakens, Treasury Yields Ease

Gold prices edged higher on Tuesday as a weaker U.S. dollar and easing Treasury yields provided support, although rising oil prices limited bullion’s advance.

Spot gold climbed 0.6% to settle at $4,163.97 per ounce, while U.S. gold futures gained 0.1% to $4,192.80 per ounce.

The precious metal has faced pressure recently as the dollar strengthened and U.S. Treasury yields surged to multi-decade highs. Higher bond yields typically reduce the appeal of non-yielding assets such as gold by increasing the opportunity cost of holding bullion.

Bond markets have been rattled by concerns over oil-driven inflation, rising corporate debt linked to artificial intelligence infrastructure spending, hawkish central banks and expanding government deficits. Fiscal concerns in France have added to global market uncertainty.

However, U.S. Treasuries recovered on Tuesday, pushing yields lower. The benchmark 10-year Treasury yield fell 3.5 basis points to 5.278%, while the 30-year yield eased to 5.661%. Both had recently reached their highest levels since early 2002.

The U.S. dollar index also declined 0.3%, giving additional support to gold prices. David Morrison, senior market analyst at Trade Nation, said gold and silver currently maintain a strong negative correlation with the dollar. Still, he noted that technical indicators suggest precious metals are not yet positioned for a major breakout, with daily MACD readings pointing to mildly negative momentum.

Meanwhile, higher oil prices capped gold’s gains. Brent crude rose 0.9% to settle at $101.21 per barrel as traders weighed improving Middle East exports against continued geopolitical risks.

Kpler data showed Gulf crude exports reached a seven-day moving average of 18.3 million barrels per day on September 30. The Group of Seven has also agreed to release 100 million barrels of crude and diesel from emergency reserves.

Despite improving supply conditions, tensions remain elevated as U.S.-Iran diplomacy shows little progress. Recent attacks on vessels in the Strait of Hormuz have kept concerns over Middle East energy supplies firmly in focus, limiting broader optimism across financial markets.