"Falling oil prices and easing inflation concerns pushed bond yields and the dollar lower, supporting gold prices. The 10-year Treasury yield sits at 4.4%, and softer real yields lower the opportunity cost of holding a non-yielding asset like bullion."
"The World Gold Council reported Q1 2026 total gold demand hit a record $193 billion, with bar and coin demand of 474 tons (up 42% year-over-year) and central bank net purchases of 244 tonnes. Reserve managers absorbed more than 1,100 tonnes in 2025, the third straight year above that threshold."
"Reports indicate Washington and Tehran are negotiating a fourteen-point memorandum to halt the war and reopen the Strait of Hormuz has cooled inflation fears and pulled the dollar to multi-month lows. Oil has done the rest: Brent is down roughly 6% on the week, easing pressure on consumer prices."
Gold futures climbed above $4,750 per ounce while silver jumped 6.5%, driven by negotiations between Washington and Tehran on a fourteen-point memorandum to halt conflict and reopen the Strait of Hormuz. These developments weakened the dollar to multi-month lows and reduced inflation expectations, causing Treasury yields to fall and investors to lower rate hike bets. Oil prices declined roughly 6% weekly, further easing consumer price pressures. Lower real yields reduced the opportunity cost of holding non-yielding assets like bullion. Record gold demand in Q1 2026 reached $193 billion, with central banks purchasing 244 tonnes and bar/coin demand rising 42% year-over-year. Silver benefited from both safe-haven flows and industrial demand from solar, AI, and electronics sectors.
#gold-and-silver-markets #geopolitical-risk #inflation-and-monetary-policy #central-bank-demand #currency-and-commodity-trading
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