US Yields Rise Above 5%, Weighing on Gold Prices Amid Ongoing Mideast Tensions

The U.S. 10-year yield has surpassed 5% for the first time since October 2023, making it more expensive to hold gold.

This development is a concern for precious metals investors as it increases the opportunity cost of holding onto gold and silver.

However, geopolitical tensions in the Middle East are still supporting prices for these defensive assets. The ongoing conflict between Iran-aligned Houthis and Saudi Arabia continues to disrupt energy supplies, making defensive assets more attractive.

Silver is also experiencing stress due to the rising interest rates and borrowing costs, which may lead to a decline in industrial demand. But, the physically tight market is providing some support for silver prices.