Gold steadies as lower bond yields offset muted safe-haven bids

Spot Gold was mostly steady on Friday, as US Treasury yields dropped and safe-haven bids were tempered in the wake of US-Iran talks.

The benchmark US 10-year bond yield plunged to a three-month low, reducing the opportunity cost of holding Gold.

The US and Iran have achieved certain progress in Geneva negotiations on Thursday over Tehran’s nuclear programme, according to mediator Oman. Still, talks ended without a breakthrough to avert potential US strikes on the Islamic country.

“Ten-year U.S. Treasury yields after subtracting inflation, so the real yield, have plummeted and that actually is currently a supporting factor, allowing gold to hold steady regardless of the risk premiums ticking down yesterday after U.S.-Iran talks,” Kelvin Wong, senior market analyst at OANDA, was quoted as saying by Reuters.

On the monetary policy front, Federal Reserve Governor Christopher Waller said he was open to keeping interest rates intact at the March meeting in case the February employment data implied the US labor market had “pivoted to a more solid footing” after weakness throughout 2025.

And, Susan Collins, President and CEO of the Federal Reserve Bank of Boston, said that keeping interest rates on hold for some time was likely appropriate, as she cited improving labor market conditions along with persistent inflation risks.

Investors are currently expecting the first rate cut, out of potential three, by the Fed for this year to occur as early as June.

Spot Gold was last down 0.09% on the day to trade at $5,180.44 per troy ounce.

The yellow metal was on course for its seventh straight month of gains, being up 5.80% so far in February.