Gold briefly crossed the $4,200-an-ounce threshold on Friday before paring gains, while silver advanced more than 3% as Treasury yields cooled from recent highs and the dollar softened, providing a tailwind for precious metals.
Spot gold traded near $4,195 an ounce, up roughly 1.5% on the day, while December gold futures hovered around $4,220. Silver climbed to $61.15 an ounce, with futures at $61.45.
The rebound followed a pullback in the 10-year Treasury yield, which eased to about 5.25% after touching multi-decade highs earlier in the week. Lower bond yields reduce the opportunity cost of holding non-yielding assets like gold, making the metal more attractive to investors.
Gold had fallen to $4,067 on Wednesday, its lowest level since early August, before recovering over the past few sessions. The dollar also weakened, further supporting bullion by making it cheaper for overseas buyers.
Yields and Dollar Ease
The 10-year Treasury note stabilized around 5.25% on Friday, while the 30-year yield settled near 5.67%. This easing helped broader markets and lifted sentiment for precious metals.
A softer dollar also contributed to the gains. Since gold is priced in dollars, a weaker greenback tends to boost demand from international investors. Conversely, a stronger dollar can weigh on prices.
While gold has recovered, traders remain focused on inflation trends and the Federal Reserve's policy path. The central bank's stance on interest rates will likely continue to influence precious metals in the near term.
Oil Prices Retreat
Oil prices moved lower after President Donald Trump said Thursday that his administration was not planning an offensive against Iran before the November 3 midterm elections. Brent crude retreated from around $105 a barrel toward $103, easing immediate concerns about Middle East escalation.
However, risks to shipping through key routes such as the Strait of Hormuz and Bab el-Mandeb have increased in recent weeks. While oil supplies have stabilized, uncertainty about maintaining those flows amid geopolitical tensions remains a key consideration for traders.
Higher oil prices can feed into inflation, potentially prompting the Fed to maintain tighter monetary policy or raise rates. The retreat in crude prices has therefore provided some relief to precious metals by easing immediate inflation worries, though the broader outlook remains sensitive to energy market developments and interest-rate expectations.
This article is for informational purposes only and does not constitute financial advice.
