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Gold Near $4,450 as Stronger Dollar and Higher Yields Cap Rally

A firmer US dollar and rising Treasury yields have undercut safe‑haven buying from Middle East tensions, leaving India and Pakistan to see sharp daily swings in retail gold prices.

Overview

  • Global spot gold hovered around $4,450–$4,457 in early June as a stronger US dollar and higher US Treasury yields reduced short‑term momentum for bullion.
  • India’s domestic price fell sharply by Rs 1,850 to Rs 159,600 per 10 grams on June 3 and then staged a partial rebound the next session, illustrating rapid day‑to‑day volatility in retail markets.
  • Pakistan’s market recorded an Rs 8,600 per tola drop on June 3 to Rs 467,762 and then a Rs 1,523 rise on June 4, showing how international moves transmit quickly to local rates and consumers.
  • Analysts say recent swings reflect a tug‑of‑war between safe‑haven demand from USIran developments and the higher opportunity cost of holding non‑yielding gold as oil‑driven inflation raises the chance of sustained higher rates.
  • The seesaw trading has cut jewellery buying and prompted ETF flows to cool in some markets, and traders are watching US jobs data, Federal Reserve signals and oil prices for the next major direction in bullion.