Gold prices fell about 0.5% on Wednesday as yields on 10‑year U.S. Treasuries rebounded after four days of declines, reducing the appeal of the non‑yielding metal.
Spot gold dipped to around $3,362.54 per ounce, while U.S. gold futures traded near $3,417.30. Investors are closely watching who President Donald Trump will nominate to fill a vacant seat on the Federal Reserve’s Board, with a decision expected this week.
Markets currently price in an 87% probability of a rate cut in September following a weaker U.S. jobs report and the recent dismissal of the Bureau of Labor Statistics commissioner. Elevated trade tensions are also weighing on sentiment, as the administration has threatened tariffs on Indian imports in response to its purchases of Russian oil.
Despite the pullback, Ricardo Evangelista, an analyst at ActivTrades, sees potential for gold to move toward $3,400 per ounce. He cites demand supported by tariff-related frictions, concerns about economic growth and inflation, and a comparatively weak dollar.
Overall, the bullion market is navigating a mix of macroeconomic signals: rising bond yields that can pressure prices, central bank developments that could influence rate expectations, and geopolitical or trade risks that typically bolster safe‑haven demand. Traders will likely remain sensitive to incoming U.S. economic data, policy announcements from the Fed, and any escalation in trade disputes that might drive further flows into gold.
Given these dynamics, short‑term volatility in gold is expected to continue. A stronger rebound in treasury yields or clearer signs of an improving labor market could cap gains, while renewed geopolitical tensions, a softer dollar, or firmer evidence of slowing growth could push bullion back toward the $3,400 level and beyond.