Gold prices went up on Monday as the US dollar became weaker and crude oil prices fell, reducing worries about rising inflation. However, the increase in gold prices remained limited because bond yields continued to rise and investors stayed cautious due to the ongoing conflict in the Middle East.
Gold is often seen as a safe investment during uncertain times, and many investors are closely watching global developments before making big financial decisions. Earlier in the day, gold prices had fallen to their lowest level since March 30 before recovering slightly.
Spot gold rose 0.7 per cent to $4,567.49 per ounce by 7:00 pm IST. Meanwhile, US gold futures for June delivery climbed 0.2 per cent to $4,572.40.
The weaker US dollar made gold cheaper for buyers using other currencies, which helped increase demand.
Even though gold prices moved higher, rising bond yields stopped prices from increasing sharply. Higher bond yields often make investors move towards bonds instead of gold because bonds offer fixed returns.
Investors are also closely watching the situation in the Middle East, as tensions in the region continue to affect global markets and overall investor sentiment.
ABP Live Business is your daily window into India’s money matters, tracking stock market moves, gold and silver prices, auto industry shifts, global and domestic economic trends, and the fast-moving world of cryptocurrency, with sharp, reliable reporting that helps readers stay informed, invested, and ahead of the curve.
We use cookies to improve your experience, analyze traffic, and personalize content. By clicking “Allow All Cookies”, you agree to our use of cookies.