Gold Holds Near $4,360 as Oil Drops
Gold prices traded near 4,360 USD per ounce on Friday. The metal gained almost 2% in the previous session.
Gold prices traded near 4,360 USD per ounce on Friday. The metal gained almost 2% in the previous session. Falling oil prices provided the primary support for this move. These lower energy costs helped ease inflation concerns in the market.
US Treasury yields retreated from multi-year highs. The yield on the 10-year Treasury fell to 4.93%. It had briefly moved above 5% earlier this week. This decline in yields reduced the opportunity cost for holding non-yielding assets like gold.
Oil supply dynamics shift
Oil prices declined for a third consecutive session. Saudi Arabia is working to restore supplies through the East-West pipeline. Markets are also monitoring diplomatic developments. Donald Trump has a meeting with Gulf leaders scheduled for next week.
Fed tightening risks persist
Investors assess the Federal Reserve policy outlook. The central bank signaled that further tightening may be necessary. It recently implemented its first interest rate increase in three years. Markets estimate the probability of another rate increase in October at 53%. This remains a significant risk factor for gold prices.
Technical indicators favor downside
The H4 XAU/USD chart shows a consolidation range around 4,304. A new downward move is developing towards 4,333. A break below this level could extend the bearish trend towards 4,215. The MACD indicator supports continued short-term downward momentum. GN auto markets/commodities: gold prices data confirms the signal line remains below zero.
