Gold Prices Slide Along With a Softer Dollar

Gold prices experienced a mixed performance on Friday morning as the dollar declined, accompanied by a drop in the 10-year U.S. Treasury yields, which fell below the 3% threshold.

By 10:53 PM ET, gold futures for June delivery on the Comex division of the New York Mercantile Exchange had decreased by $0.20, or 0.02%, bringing the price to $1,317.60 per troy ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was last reported at 91.32, down 0.08%. Earlier this week, yields surged to a four-year high of 3.033%, which strengthened the dollar.

As the dollar reached a three-month peak above the 91 mark, precious metals faced pressure, with gold trading at a low of around $1,310. Dollar-denominated assets like gold are sensitive to fluctuations in the dollar; when the dollar strengthens, gold becomes more expensive for foreign currency holders, reducing demand.

Interestingly, on Friday morning, gold prices dipped even as the dollar fell.

Meanwhile, developments in inter-Korean relations reportedly helped ease the geopolitical tensions in East Asia. Gold is often regarded as a safe-haven asset, attracting demand during periods of heightened geopolitical risks. Therefore, a perceived improvement in inter-Korean relations led investors to shift towards riskier assets.

In other precious metal trading, silver decreased by 0.13% to $16.47 per troy ounce, while platinum remained steady at $909.20 an ounce.