Gold slips as dollar, Treasury yields tick higher

Gold prices eased on Wednesday as the dollar and US bond yields climbed, although concerns over the Trump administration’s fresh tariffs kept prices above the USD 3,000 per ounce level.

Spot gold was down 0.1% at USD 3,016.71 an ounce at 1:30 p.m. ET (1730 GMT). US gold futures settled 0.1% lower at USD 3,022.50.

The dollar index rose 0.4% against its rivals, making gold more expensive for other currency holders, while benchmark 10-year US Treasury yields inched higher.

“Gold remains underpinned by haven interest amid ongoing tariff uncertainties and geopolitical risks. Fresh record highs would bode well for the attainment of my next upside target at USD 3,150,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

US President Donald Trump said on Monday that automobile tariffs are coming soon, but indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks.

“If the tariffs are not as serious as people are thinking, we could see a correction (in gold),” said Marex analyst Edward Meir.

Investors worried that Trump’s tariffs would stoke inflation and hinder economic growth are taking refuge in safe-haven assets like gold.

Gold, traditionally seen as a hedge against uncertainty and inflation, has risen more than 15% this year and hit an all-time peak of USD 3,057.21 on March 20.

Market participants now look forward to US personal consumption expenditures data due on Friday that could shed more light on US rate cut path.

“Tame PCE inflation would reinforce those dovish leanings and provide ongoing lift for gold,” Grant said.

The Federal Reserve held its benchmark interest rate steady last week but indicated it could cut rates later this year. Non-yielding bullion tends to thrive in a low interest-rate environment.

Minneapolis Fed Bank President Neel Kashkari said that while the US central bank has made a lot of progress bringing inflation down, “we have more work to do” to get inflation to the Fed’s 2% target.

Elsewhere, spot silver fell 0.3% to USD 33.63 an ounce, while platinum was down 0.1% to USD 975.17. Palladium rose 1% to USD 965.98.

(Reporting by Brijesh Patel and Anmol Choubey in Bengaluru, additional reporting by Ishaan Arora; Editing by Alexandra Hudson, Maju Samuel, and Vijay Kishore)