Gold Price Fall As Dollar Value Surge On US Treasury Yields

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The price of yellow metal - Gold, fell to their lowest level in a week today. In the back drop of the strong U.S. Dollar after U.S. President's decision to pull the country out of the Iran nuclear deal encouraged the oil prices and Treasury yields to surge ahead.

Gold Price Fall As Dollar Value Surge

U.S. President Donald Trump said that he will reimpose the U.S. economic sanctions on Iran which was previously lifted under the agreement in 2015 amidst the raising risk of conflict in Middle East and upsetting the European partners and driving uncertainty over global supply of oil.

The value of dollar surged against Japanese yen, as the price of oil climbed to a new high pushing yields on the benchmark 10-year Treasury note closer to around 3 percent.

The spot gold has increased by 0.006 percent to $1,312.08 per ounce at 8:22 NYT.

U.S. Gold futures for June delivery were down by 0.6 percent at $1,305.70 per ounce.

In times of geophysical tension political or economic, the prices of gold escalates as it is considered as a safe-haven for investment purpose apart from Japanese yen.

The prices of silver dropped by 0.03% to $16.47 per ounce, while palladium slipped by 2.20% to reach $974.40 per ounce.

Read more about: gold prices
Story first published: Wednesday, May 9, 2018, 18:15 [IST]
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