Gold Edges Higher Amidst Rising US Dollar and Treasury Yields

Gold prices remained relatively stable on Friday but were still poised for their second consecutive weekly decline. The price of spot gold was little changed at $4,184.45 per ounce by 0419 GMT and had fallen more than 2% for the week so far.

The US dollar was strong, making it more expensive to hold greenback-priced metals, while yields on 10- and 30-year Treasuries reached their highest levels since 2002 on Thursday. This increased borrowing costs, which typically decrease gold's attractiveness due to its lack of interest payment.

Market participants are closely watching US interest rate expectations and geopolitical developments in the Middle East, said Kyle Rodda, senior financial market analyst at Capital.com. The upcoming US nonfarm payroll data will be crucial for determining rate expectations, with hot numbers potentially leading to further rate hikes from the Federal Reserve.

The September US nonfarm payrolls report is due at 1230 GMT. Traders are currently pricing in only a 28% chance of a rate hike this month, compared to about 70% earlier in the week, and still see an 82% chance of a rate increase in December.