Gold Edges Higher Amid Geopolitical Tensions, Volatile Interest Rates

Gold and silver prices rose in early trade on Tuesday (September 1), despite higher US bond yields and crude oil prices. The COMEX gold price was up 0.27% to $4,493.70 per ounce, while silver increased by 0.63% to $66.64 an ounce.

The upward trend is attributed to safe-haven demand, as renewed tensions between the US and Iran have raised uncertainty across financial markets.

However, higher bond yields and oil prices remain a headwind for gold, making interest-bearing assets more attractive and increasing expectations of a September Federal Reserve rate hike.

Renowned bullion dealer RiddiSiddhi Bullions' managing director Prithviraj Kothari expects volatility to remain elevated and has suggested a 'buy on dips' approach for the week.