KVB Market Analysis | 13 August: Gold Prices Surge Amid Middle East Tensions and Falling U.S. Bond Yields
Gold prices surged over 1% in the North American market on Monday, driven by declining U.S. government bond yields and escalating tensions in the Middle East. The 10-year Treasury yield fell to 3.902% ahead of key U.S. inflation data. With Middle East crisis intensifying, demand for gold as a safe-haven investment has increased, especially amid warnings from Western countries to Iran and its allies. Gold typically performs well during geopolitical instability and periods of low interest rate.
