Gold Prices Soar as Yields Drop Amid Geopolitical Tensions
Gold prices snapped their six-session losing streak on Thursday in India's national capital, New Delhi. The precious metal rose by Rs 3,400 to reach Rs 1,59,500 per 10 grams (inclusive of all taxes) from the previous day's closing level of Rs 1,56,100 per 10 grams.
Silver also rebounded strongly, jumping by Rs 5,000 to hit a price of Rs 2,40,500 per kilogram (inclusive of all taxes). This comes after it had closed at Rs 2,35,500 per kg in the previous session.
Analysts pointed out that gold and silver's rebound was triggered by a decline in US Treasury yields. The decrease in yields is seen as a result of renewed geopolitical tensions, which has increased demand for safe-haven assets like gold.
Gaurav Garg, Head of Research at Lemonn, said that the rebound highlights gold's sensitivity to shifts in US monetary-policy expectations. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, added that weaker-than-expected private employment data challenged the hawkish Fed narrative, pushing the dollar and Treasury yields lower.