Gold climbs to £3,037 an ounce as dollar weakens and real yields fall

Gold climbed on Tuesday, reaching approximately £3,037 per troy ounce as the US dollar index eased to just under 100 and the 10-year TIPS real yield dipped to around 2.1 per cent. Both moves tend to support precious metals as traders recalibrate their expectations for inflation and interest rates.

A weaker dollar makes dollar-priced assets cheaper for pound-based buyers, whilst the contraction in real yields matters because gold and silver generate no income. When inflation-protected bond yields fall, the metals become relatively more attractive as a store of value competing against bonds and cash.

Silver performed slightly better, rising 0.81 per cent to trade near $58.26 per ounce, roughly £43.15 in sterling. Gold's gain of 0.44 per cent left it near $4,095.77, or about £3,037 per ounce at today's approximate exchange rate. The gold to silver ratio remains near 70 to 1, elevated by historical standards.

For UK buyers, a softer greenback and lower yields favour precious metals as a class, though both remain well below January highs. The all-in cost, which includes the dealer premium, delivery fees, and 20 per cent VAT on silver, is the key factor when comparing value. This is not financial advice.