Gold prices fall: Yields and stronger dollar outweigh safe-haven demand

On Thursday, March 5, gold prices reversed their early gains and turned lower, mainly due to rising U.S. Treasury yields and a stronger dollar. As of that morning, spot gold fell 0.7% to $5,099.48 per ounce, while U.S. gold futures dropped 0.5% to $5,108.70 per ounce. Although Middle East conflicts provided some safe-haven support, the market focused more on inflationary pressures caused by rising oil prices and cooling expectations for a Federal Reserve rate cut. The simultaneous rise in the dollar and U.S. Treasury yields increased the opportunity cost of holding gold, and silver, platinum, and palladium also declined in tandem.