Gold Prices Rise $29/Oz, Silver Increases $1.8/Oz Amid Decline in Bond Yields

Precious Metals Find Support Amid Elevated Treasury Yields and US Dollar

Precious metals experienced a mixed session on Wednesday, as bond yields eased slightly, but elevated Treasury yields and a firm US dollar continued to cap upside momentum. Gold and silver oscillated between gains and losses, but remained largely tilted to the upside.

Comex gold gained $29 per troy ounce to touch an intraday high of $4,540, while silver futures rose by $1.8 per ounce to $76.99, rebounding after four straight sessions of losses. Despite the mild gains, silver still remains nearly 16% below its recent high of $90 per ounce.

The precious metals have been trading in a limited range as escalating tensions between the US and Iran kept markets focused on inflation risks and the possibility of higher interest rates. The dollar index retreated sharply from its intraday high to 98.82 but continued to hover near a six-week high, while benchmark 10-year Treasury yields remained near more-than-one-year highs.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Higher Treasury yields increase the opportunity cost of holding non-yielding gold, while a stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies. Markets also remained focused on the ongoing US-Iran conflict and delays in reopening the Strait of Hormuz, which continue to fuel inflation concerns and expectations of tighter global monetary policy, said Kotak Securities.

The brokerage further stated that near-term downside pressure may persist if Treasury yields and the dollar remain elevated. However, geopolitical risks, sticky inflation, and disruptions in energy markets are expected to provide a strong underlying support for bullion prices.

Tensions in the Middle East showed no signs of easing after US President Donald Trump warned that the US could resume strikes on Iran within "two or three days" if Tehran failed to accept Washington's peace terms. Iran's paramilitary Revolutionary Guard reportedly issued a strongly worded statement on Wednesday, threatening to extend the Middle East conflict "beyond the region" if the US and Israel resume attacks on Tehran.

The release of the Federal Reserve's meeting minutes later on Wednesday is expected to dictate the near-term direction of the market. Markets now see very limited scope for interest rate cuts through most of 2026, with expectations increasingly shifting toward rates remaining unchanged or even tighter policy later in the year.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Indian Markets

Tracking international prices, near-month gold futures on MCX gained ₹1,298 per 10 grams to touch an intraday high of ₹1,60,378, reclaiming the ₹1.60 lakh mark after remaining below it for the previous three sessions. Last week, the yellow metal had closed with a strong gain of 4%.

Silver futures on MCX rose by ₹6,178 per kilogram to an intraday high of ₹2,76,797. However, from its recent peak of ₹3,04,891, the white metal still remains down by ₹28,094 based on today's high.