Gold and Silver Prices Hold Steady as Strong Dollar and Rising US Yields Pressure Bullion
Gold and silver prices remained largely stable on Friday, March 13, as investors weighed safe haven demand against pressure from a stronger US dollar and rising US Treasury yields. Ongoing geopolitical tensions and shifting expectations around interest rates continued to influence sentiment in the precious metals market.COMEX Gold and Silver See Minor Declines
On the commodities exchange, COMEX gold was quoted at $5,117.40 per ounce, down 8.40 points or 0.16 percent. COMEX silver traded at $84.5 per ounce, declining by 0.522 points or 0.61 percent.Despite the limited daily movement, bullion prices are on track for their second consecutive weekly decline.
The recent weakness has largely been attributed to the strengthening US dollar and rising Treasury yields, both of which tend to weigh on precious metals.
Strong US Dollar and Yields Weigh on Bullion
A stronger US dollar increases the cost of dollar denominated commodities for buyers using other currencies, which can reduce demand for metals such as gold and silver.At the same time, US Treasury yields have climbed to their highest levels since August following economic data that signaled resilience in the US labor market. Recent jobless claims figures showed that new applications for unemployment benefits remained subdued.
Following the data release, traders scaled back expectations of near term interest rate cuts by the US Federal Reserve.
Market pricing now indicates almost no probability of a rate cut at the next policy meeting, with expectations for easing later in the year also moderating. Higher interest rates typically reduce the appeal of non yielding assets such as gold.
Middle East Tensions Add Volatility to Energy Markets
Meanwhile, geopolitical developments in the Middle East have continued to keep energy markets volatile. The conflict involving the United States, Israel, and Iran has disrupted shipping activity through the Strait of Hormuz, a key route for global oil trade.Crude oil prices have risen to their highest closing levels since August 2022 amid concerns about supply disruptions.
The International Energy Agency said the conflict has triggered the largest supply disruption in the history of the global oil market. In response, member countries have released a record 400 million barrels from emergency reserves.
Gold Maintains Strong Gains in 2026
Despite the recent pullback, gold has delivered strong gains so far this year. The metal has risen around 18 percent in 2026 and continues to trade above the $5,000 per ounce level.Currency movements, bond yields, and geopolitical developments are expected to remain the primary drivers for precious metals in the near term.
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