Gold prices largely maintained the gains they recorded in the previous session, driven by selling pressure in stock markets and a decline in US Treasury bond yields. Gold per ounce traded around 4,160 dollars on Friday.
The precious metal had gained 1.6 percent in the previous session. Growing concerns regarding the future of artificial intelligence investments triggered a sell-off on Wall Street, particularly in chipmaker stocks. The weakening risk appetite strengthened investors' search for safe havens, while also bringing buying interest to bond markets.
BOND YIELDS SUPPORTED GOLD
US Treasury bond yields recorded declines of up to 12 to 15 basis points across the maturity curve. Gold, which does not provide interest, can become more attractive to investors during periods when bond yields decline. Therefore, the drop in yields reduced the opportunity cost of holding gold, providing support to prices.
Although the pressure on stocks eased slightly on Friday, providing partial relief, bond yields and expectations regarding the US Federal Reserve's interest rate path continue to be the determining factors in the course of gold prices.
Gold also recovered the losses it experienced following the September inflation data, which was announced higher than expected on Wednesday. The fact that the inflation data exceeded forecasts had strengthened expectations that the Fed might raise interest rates in October.
Investors are focused on the remarks to be made by Fed Governor Kevin Warsh at the International Monetary Fund meeting held in Bangkok. It is stated that Warsh's assessments could be influential on interest rate expectations and the direction of gold.
Spot gold fell 0.3 percent to 4,158.03 dollars as of 07.48 on Friday. The price of silver per ounce dropped 0.5 percent to 57.13 dollars. While platinum and palladium remained largely flat, the Bloomberg Dollar Spot Index showed no change following the 0.3 percent decline it recorded in the previous session.
News Source: 12punto
