Gold Edges Higher Amid Geopolitical Tensions

Gold prices inched higher on Friday despite a stronger US dollar and rising Treasury yields. The precious metal was bolstered by geopolitical tensions, particularly around the Strait of Hormuz, which remains under military pressure.

The European Central Bank kept interest rates unchanged at 2.25%, while the Federal Reserve's upcoming policy decision on July 29 is being closely watched. Initial jobless claims in the US fell to their lowest level since September 1969, reinforcing the view that layoffs remain historically low.

Spot gold was trading near $4,055 an ounce, up 0.16% on the session, while silver was near $58.31 an ounce, gaining 1.35%. The metals' prices were also influenced by elevated crude oil prices and firm US Treasury yields.

While geopolitical risks support defensive demand for gold, higher inflation concerns can also boost Treasury yields. Market participants will be monitoring the Federal Reserve's communication ahead of its policy decision to gauge the impact on gold and silver prices.