Global Gold Prices Slip as U.S. Bond Yields Rise
New York, KOMPAS.com - Global gold prices turned lower at the close of trading on Thursday (5 March 2026) local time, or Friday morning in WIB, pressured by higher U.S. government bond yields and a firmer U.S. dollar.
Citing Reuters, spot gold fell 1.2% to around $5,076.59 per ounce, after earlier in the session had risen to $5,194.59 per ounce.
Meanwhile, the U.S. futures contract for April delivery closed down 1.1% at $5,078.70 per ounce.
TD Securities Global Head of Commodity Strategy, Bart Melek, said that higher oil prices and potential inflation also influenced gold’s moves, especially amid rising U.S. government bond yields.
‘The market sees higher oil prices and potential inflation, while higher bond yields are generally not good for gold,’ Melek said.
This escalation has heightened concerns about global energy supplies, supporting higher oil prices and fueling inflation worries. The situation also narrows the window for a near-term rate cut.
As a safe-haven asset that does not pay a yield, gold typically benefits from lower interest rates. Conversely, rising rates or yields tend to weigh on the attraction of holding gold.
The 10-year U.S. Treasury yield rose to its highest in three weeks. The U.S. dollar index also rose about 0.5%, making gold more expensive for holders of other currencies, thereby dampening investor demand for gold.
Nevertheless, Melek continued to say that the fundamentals for gold remain relatively solid amid global uncertainty.
‘Ultimately, we will start to see much larger deficits in the U.S. and extremely high uncertainty,’ he said.
The U.S. Federal Reserve has also reported that economic activity picked up slightly in recent weeks, prices were still rising, and the employment situation remained relatively stable.
Market participants expect the Fed to hold its policy rate at the meeting on March 18.
Investors are now awaiting the release of U.S. February employment data due Friday for further clues on the path of monetary policy.
Other precious metals: spot silver fell 1.8% to $81.91 per ounce. Platinum declined 1.1% to $2,125.10 per ounce, while palladium slid 2.4% to $1,634.15 per ounce.