Dollar Surge, Higher Yields Weigh on Gold as Metals Retreat

Gold and silver prices retreated in late-afternoon U.S. trading on Friday as a firmer U.S. dollar, elevated Treasury yields, and rising oil prices outweighed support from Thursday's softer PCE inflation data.

The spot price of gold was trading near $4,050.70 an ounce, down 1.27% on the session, while spot silver was trading near $57.75, down 1.93%. Gold's session range was $4,018.20 to $4,112.80, leaving the metal above the $4,000 area but below Thursday's $4,101 breakout level and the $4,114 resistance level.

The Fed held rates steady in the 3.50% to 3.75% range by a 9-3 vote, with three officials favoring a 25-basis-point hike. Thursday's data showed real GDP rose at a 1.5% annualized rate in the second quarter, down from 2.1% in the first quarter.

Traders are watching follow-through in September Fed-rate pricing, next week's U.S. labor data, and any fresh disruption to Hormuz or Red Sea shipping lanes.