Gold holds steady on Wednesday after record highs

Gold prices remained stable on Wednesday after reaching historic highs last week, Reuters reported.

The safe-haven metal benefited from ongoing tensions in the Middle East, even as a stronger US dollar and rising Treasury yields exerted downward pressure.

Spot gold hovered around $2,381.68 per ounce, holding onto its gains after Friday’s record high of $2,431.29. However, US gold futures dipped slightly by 0.4 per cent.

The greenback’s strength, near a five-month peak, made gold less attractive for buyers using other currencies.

Additionally, benchmark US Treasury yields remained close to their highest in five months at 4.6591 per cent.

Further escalation in the Middle East could potentially push gold prices back towards their record highs, explained IG market strategist Yeap Jun Rong.

Recent comments from top US central bankers, including Fed Chair Jerome Powell, have dampened hopes for a near-term interest rate cut.

While gold prices held steady, other precious metals showed mixed performance. Silver edged slightly higher 0.3 per cent to $28.16 per ounce, while platinum dipped 0.3 per cent at $953.75 and palladium saw a small gain of 0.4 per cent at $1,017.58.