Gold Prices Surge 1.7% as US Dollar and Treasury Yields Weaken
Global gold prices rallied sharply on Thursday after the US dollar weakened and US Treasury yields declined, boosting investor demand for safe-haven assets amid renewed optimism over easing geopolitical tensions in the Middle East.
Spot gold climbed 1.7% to US$4,505.35 per ounce at 9:05 a.m. New York time, while US gold futures for August delivery advanced 1.5% to US$4,532.80 per ounce.
The precious metal gained momentum after Israel and Lebanon announced a ceasefire agreement on Wednesday, raising hopes that negotiations between the United States and Iran could also move toward a peaceful resolution.
The development triggered a sharp decline in global oil prices, which fell more than 3% as traders anticipated smoother operations through the Strait of Hormuz, a crucial route for global oil shipments, if regional tensions continue to ease.
At the same time, the US Dollar Index slipped around 0.3%, making gold more affordable for holders of other currencies and increasing international demand for the metal.
Falling US Treasury yields, including the benchmark 10-year yield, also strengthened gold’s appeal since the precious metal does not provide interest returns.
Independent metals trader Tai Wong stated that weaker Treasury yields and a softer dollar helped gold remain above a key technical level, namely its 200-day moving average.
According to Wong, the possibility of gold reaching another record high this year will largely depend on future geopolitical developments in the Middle East.
“New record highs for gold could become more difficult if a permanent ceasefire with Iran is achieved, allowing the Strait of Hormuz to fully reopen, energy prices to decline, and market concerns over interest rates to ease,” Wong said.
Despite the latest rebound, gold prices remain significantly below the all-time high of US$5,594.82 per ounce recorded on January 29, 2026.
Since tensions involving Iran escalated in late February, gold prices have corrected by approximately 16%.
Investors are now awaiting the release of the US May employment data scheduled for Friday, as the report is expected to provide fresh clues regarding labor market conditions and the Federal Reserve’s future interest rate policy direction.
Meanwhile, other precious metals also posted gains. Spot silver surged 3.1% to US$74.96 per ounce, platinum rose 1.9% to US$1,895.29 per ounce, and palladium increased 1.6% to US$1,322.01 per ounce.