Gold prices rise again in global market as dollar falls and oil prices drop

Staff Report: PNN

Global gold prices have risen again due to a fall in the US dollar and a decline in international crude oil prices. At the same time, concerns over global inflation have eased slightly among investors. However, the rise in gold prices remains limited due to high yields on government bonds.

According to international market analysts, gold prices fell to their lowest level since late March at the start of Monday’s trading session. Later, the market recovered and spot gold rose by about 0.7 percent to more than 4,567 dollars per ounce. At the same time, US gold futures for June delivery also increased slightly.

Analysts say that the decline in the US dollar against major global currencies has made gold more affordable for investors in other countries, increasing demand in the market.

Market analyst Jim Wyckoff said that the weakening US dollar index has positively impacted the gold market. At the same time, falling crude oil prices have also provided some relief to the market.

Various international media reports said that oil prices fell due to news that US sanctions on Iranian oil could be eased. As a result, WTI and Brent crude prices dropped by about 2 dollars per barrel.

Analysts say that ongoing conflicts in the Middle East and volatility in the energy market had increased inflationary pressure globally, raising fears of further interest rate hikes by central banks. However, falling oil prices have somewhat eased that pressure.

Gold is generally considered a safe investment during times of economic uncertainty and is also seen as a hedge against inflation. However, higher interest rates reduce the attractiveness of gold as a non-yielding asset, experts say.

Meanwhile, pressure continues in global bond markets. The yield on the US 10-year Treasury bond has risen to its highest level in recent times, which analysts say is also affecting the gold market.

Due to reduced investor interest in global markets, several major financial institutions have lowered their gold price forecasts. Among them, investment bank JP Morgan has reduced its average gold price forecast for 2026.

Other precious metals have shown mixed trends. Silver prices have increased and platinum has also seen a slight rise, while palladium prices have declined.