Gold prices nudged lower on Wednesday, as rising Treasury yields and a firm dollar
outweighed optimism over a potential U.S.-Iran peace agreement.
Spot gold was down 0.3% at $4,467.59 per ounce, as of
0233 GMT. In the previous session, bullion hit its lowest level
since March 30.
US gold futures for June delivery lost 0.9% to
$4,471.10.
“Gold is running out of puff somewhat against this backdrop
of rising yields, and a dollar which has a spring in its step
courtesy of the hawkish shift in the rates outlook,” said Tim
Waterer, chief market analyst at KCM Trade.
The dollar hovered at a six-week high, making
greenback-priced bullion more expensive for holders of other
currencies.
Benchmark 10-year U.S. Treasury yields were
steady at a more than one-year high, raising the opportunity
cost of holding non-yielding gold.
U.S. signals on Iran remained mixed, with U.S. President
Donald Trump warning Washington may still need to strike Tehran,
while Vice President JD Vance said both sides were making
progress and did not want a return to conflict.
Philadelphia Federal Reserve Bank President Anna Paulson
said the current level of interest rates is appropriate for the
moment, putting downward pressure on inflation at a time when
price pressures remain elevated.
She, however, said it was “healthy” that investors had begun
considering scenarios where rates might need to rise.
The U.S. Federal Reserve will avoid cutting rates this year,
according to most economists polled by Reuters who largely
pushed long-held calls for reductions into next year on hopes
the current inflation flare-up is temporary.
Investors are waiting for minutes from the Fed’s April
policy meeting, due later in the day, to gauge the U.S. central
bank’s monetary policy outlook.
Spot silver fell 0.8% to $73.22 per ounce, platinum
slid 0.5% to $1,912.67, while palladium rose 0.2%
to $1,356.32.
Published on May 20, 2026
