The dollar and U.S. Treasury yields climbed on Wednesday, weighing on gold. The
The dollar index was around 102.30, near its highest level since April 2025. The
U.S. 10-year yield rose to about 5.324%, close to Monday’s 5.349%, the highest
since 2002. Middle East conflict-driven oil gains and higher inflation risk,
rising government debt and deficits, and U.S. economic resilience have pushed
financing costs higher. Traders are watching FOMC minutes for fresh clues on
further Fed tightening. Since the late-February onset of the Middle East
conflict, markets’ hawkish Fed expectations have pressured gold; spot bullion is
more than 25% below January’s near-$5,600 record high, though long-term demand
still provides underlying support.
