Decline in US bond yields supported gold prices
The retreat in US Treasury yields increased the appeal of non-yielding gold for investors, allowing prices to recover.
Selling pressure on chipmaker stocks in global markets and a drop in US Treasury yields helped spot gold gain value. Having come under pressure following September inflation data, gold made up for its losses with the activity in the bond market and continued the week on a strong trajectory.
Bond yields and the relationship with gold
Concerns over artificial intelligence investments triggered a wave of selling in chipmaker stocks on Wall Street. Investors fleeing risky assets turned to bonds, bringing about a 12 to 15 basis point drop in US Treasury yields.
The carrying cost of gold, an asset that offers no interest yield, decreased alongside this retreat in bond yields. This became one of the key factors supporting prices by increasing the precious metal's attractiveness among investors.
Current market situation and expectations
Gram gold is trading in the market at purchase prices of 6,573 TRY and selling prices of 6,655 TRY. Meanwhile, spot gold hovers at 4,158.03 dollars with a limited decline of 0.3 percent on Friday morning.
Investors are closely monitoring the statements to be made by Fed Chair Kevin Warsh at the International Monetary Fund meeting. Warsh's messages regarding interest rate policy are expected to determine the short-term direction of gold prices.