Bullion Prices Decline: Dollar and Yields Drive Movement

Gold and Silver Prices Hold Steady as Strong US Dollar and Rising Yields Weigh on Bullion​

Precious Metals Remain Largely Stable in Friday Trading​

Gold and silver prices remained largely stable on Friday, March 13, as investors balanced safe haven demand with pressure from a stronger US dollar and rising US Treasury yields. Ongoing geopolitical tensions and changing expectations around interest rates also influenced market sentiment.

On the COMEX, gold was quoted at $5,117.40 per ounce, down 8.40 points or 0.16 percent. Silver prices on COMEX were trading at $84.5 per ounce, lower by 0.522 points or 0.61 percent.

Despite the limited intraday movement, bullion prices are heading toward their second consecutive weekly decline.

Strong Dollar and Higher Bond Yields Pressure Bullion​

The recent weakness in precious metals has been largely linked to the strengthening of the US dollar and rising US Treasury yields.

A stronger dollar raises the cost of dollar denominated commodities for buyers using other currencies, which can reduce demand for assets such as gold and silver.

At the same time, US Treasury yields have climbed to their highest levels since August. The rise followed economic data that signaled continued strength in the US labour market. Recent figures showed that new applications for unemployment benefits remained relatively low.

Following the release of this data, traders reduced expectations of near term interest rate cuts by the US Federal Reserve. Market pricing currently suggests almost no probability of a rate cut at the next policy meeting, while expectations for policy easing later in the year have also moderated.

Higher interest rates typically reduce the appeal of non yielding assets such as gold.

Middle East Tensions Keep Energy Markets Volatile​

Geopolitical developments in West Asia have added another layer of uncertainty to global markets. The conflict involving the United States, Israel, and Iran has disrupted shipping through the Strait of Hormuz, an important route for global oil trade.

Crude oil prices have climbed to their highest closing levels since August 2022 amid concerns about supply disruptions.

The International Energy Agency stated that the conflict has resulted in the largest supply disruption in the history of the global oil market. In response, member countries released a record 400 million barrels from emergency reserves.

Gold Maintains Strong Gains in 2026​

Even with the recent pullback, gold continues to hold strong gains this year. The precious metal has risen about 18 percent so far in 2026 and remains above the $5,000 per ounce level.

Movements in the US dollar, changes in bond yields, and geopolitical developments are expected to remain important factors influencing precious metal prices in the near term.