Gold retains gains as bond yields decline
The search for safe havens and the decline in US Treasury yields supported the precious metal's gains from the previous session.
Gold managed to hold onto its previous daily gains after investors turned to the bond market in search of a safe haven against the sell-off in equities, following a drop in US Treasury yields.
Search for Safe Havens in Markets
Gold held onto its gains from Thursday, when it recorded its strongest daily rise in more than two weeks, following investors' shift toward the bond market seeking a safe haven against the sell-off in equities.
Latest Status of Gold Prices per Ounce
Gold, which rose 1.6% in the previous session, traded around $4,160 per ounce. Spot gold fell 0.3% to $4,158.03 as of 07:48.
As deepening concerns over growth in artificial intelligence investments triggered an exit from chipmakers on Wall Street, a rally was observed in global bond markets.
Bond Yields and Interest Rate Impact
The pressure on equities eased on Friday. Yields on US Treasury bonds registered declines ranging from 12 to 15 basis points across the yield curve.
Gold, which does not yield interest, generally gains value in low-interest environments. The precious metal also recovered the losses it suffered following the higher-than-expected September inflation data released on Wednesday.
Other Precious Metals and Expectations
Silver fell 0.5% to $57.13, while platinum and palladium followed a largely flat course. Market participants will closely monitor statements from Fed Chair Kevin Warsh amid ongoing developments.