On Wednesday, gold prices were marginally lower as the US currency strengthened and Treasury yields rose. Spot gold: was down 0.2 percent at $2,385.23 an ounce. US gold futures: fell 0.3% to $2,425.50 an ounce.
Gold prices rose due to gains in the dollar by investors holding foreign currencies. Higher Treasury yields reduce the appeal of non-yielding assets such as gold, and the possibility of a Federal Reserve interest rate cut prevents further declines in gold prices.
Interest rates have historically helped gold prices. ETF holdings increased to 848.06 tonnes from 844.90 tonnes, indicating investors are still attracted to gold despite the unpredictability of the economy.
Overall, gold price dynamics are shaped by a strong dollar, rising Treasury rates and the prospect of Fed rate cuts, while gold prices are also influenced by geopolitical factors.
