Gold Edges Higher Despite Stronger Dollar and Rising Yields
Gold and silver prices edged higher on Friday despite a stronger dollar and rising US Treasury yields. The precious metals sector steadied after Thursday's selloff, as traders weighed in on the latest economic data.
The US labor market showed a strong signal, with initial jobless claims falling to 187,000 for the week ended July 18, the lowest level since September 1969. This reinforced the view that layoffs remain historically low.
However, firm Treasury yields and a stronger dollar limited gold's upside. The 10-year Treasury yield was near 4.70%, while the US dollar index, or DXY, was near 101.39.
The geopolitical situation continued to support defensive demand for gold, with tensions around the Strait of Hormuz remaining high. Transit through the waterway is described as open but under active military and shipping pressure.