Gold Reclaims $4,347 as Fed Hike Odds Rise

Spot gold closed the session near $4,347.10 per ounce. The price rose 0.73% during Friday trading. This move reversed part of the decline seen on Thursday. The recovery occurred as the U.S. dollar weakened. Crude oil prices also fell back from their recent highs.

Silver finished the day at $64.260 per ounce. The metal gained 1.28% on the session. This performance followed a drop of more than 5% on the previous day. Both precious metals stabilized as risk appetite improved in global equity markets.

Inflation Data Drives Rate Expectations

The August CPI report met expectations for headline inflation. Core inflation figures remained firm. Derivatives markets priced an 85% to 90% chance of a rate hike next week. The 10-year Treasury yield settled near 4.95%. The 30-year yield briefly exceeded 5.42%, a 19-year high.

Brent crude oil fell by approximately 3% on the day. Prices retreated from a four-month high near $110 per barrel. WTI crude remained above $100 per barrel. The U.S. dollar index softened after its earlier gain. These factors reduced immediate pressure on gold prices.

Equity Markets Reflect Reduced Risk

North American stocks closed higher on Friday. The S&P 500 rose 0.9% to finish at 7,656.98. The Dow Jones Industrial Average gained 1.0% to reach 52,573.29. The Nasdaq Composite added 1.0% to close at 26,333.04. The Russell 2000 increased by 0.4% to 2,903.94.

European indices also posted gains. The STOXX Europe 600 rose 0.49% to 639.10. Germany's DAX index climbed 0.82% to 25,568.56. France's CAC 40 added 0.78% to 8,179.77. Italy's FTSE MIB index increased by 1.36% to 52,512.03. London's FTSE 100 rose 0.39% to 10,650.44.

Technical Levels Define Next Move

Gold held support in the $4,319.60 to $4,230.51 zone. The price remained above the 50-day moving average at $4,269.02. Silver defended its support area between $62.00 and $62.50. Bulls must clear the $4,396.78 resistance level for a sustained advance.

According to GN auto markets/commodities: silver prices, silver needs to reclaim the $65.60 to $68.17 area. A break below $4,319.60 would expose gold to further downside. Deeper support targets sit at $4,269.02 and $4,230.51. The current rebound is tactical rather than a confirmed trend reversal.