Gold Regains Shine as Bond Yields Fall
Gold and silver prices rose as US bond yields declined, while Gulf markets showed mixed responses to geopolitical and monetary factors.
Translated by Qiyas from النهار — Original source
Spot gold rose 1.3% to $4,156.81 per ounce, while silver climbed 2.1% to $56.74, as U.S. Treasury yields fell and investors moved into safe-haven assets following a wave of equity sell-offs, particularly in technology stocks. The gold rally helped recoup much of its previous losses, coinciding with a 0.3% decline in the spot U.S. dollar index. However, the yellow metal continues to face pressure from the prospect of sustained monetary tightening, as higher interest rates increase the cost of holding non-yielding assets.
The movements in gold, oil, and equities reveal a clear divergence in how markets are responding to risks. Oil is influenced by investors’ balancing act between the possibility of supply disruptions and a declining risk appetite, while gold benefits from safe-haven demand and lower yields. Equities, meanwhile, are under pressure from risk repricing and reduced liquidity.
In Gulf markets, geopolitical developments, energy prices, and U.S. monetary policy remain interconnected factors in shaping investment trends, alongside the financial results of local companies. At the Kuwait Stock Exchange, the market’s ability to regain momentum will depend on the balance between external pressures and the strength of companies’ operational fundamentals, as well as the return of liquidity to more active levels.
