Gold prices rose by more than 1% on Friday as the US dollar weakened and Treasury bond yields fell. Lower oil prices also supported gold as investors weighed inflation risks and the Federal Reserve’s next interest rate decision.
Spot gold climbed 1.1% to $4,177.44 an ounce after hitting a two-month low on Wednesday. US gold futures also gained 1.1%, reaching $4,202 an ounce.
The dollar stopped rising, making gold cheaper for buyers using other currencies. Meanwhile, the yield on 10-year US Treasury bonds fell for a second straight session, increasing gold’s appeal.
Oil prices also moved lower as concerns about Middle East supply disruptions eased. US President Donald Trump said Washington would not attack Iran before the November midterm elections and pointed to progress in talks aimed at ending the conflict.
Other precious metals also recorded gains on Friday. Spot silver rose 1.4% to $60.16 an ounce, while platinum climbed 2.6% to $1,676.67. Palladium gained 2.8% to $1,154.70 an ounce.
Despite Friday’s recovery, silver, platinum and palladium were still heading toward weekly losses. Precious metals remain sensitive to inflation expectations and signals about the Federal Reserve’s future interest rate decisions.
