Gold Prices Edge Higher Amid Stronger Dollar and Treasury Yields

Gold prices edged higher on Friday despite a stronger US dollar and rising Treasury yields. Spot gold traded near $4,055.00 an ounce, up 0.16% on the session. Silver also moved higher, nearing $58.31 an ounce with a gain of 1.35%. The precious metals sector steadied after Thursday's selloff, influenced by a stronger signal from the US labor market and the European Central Bank's decision to hold interest rates.

The ECB kept its deposit rate unchanged at 2.25%, while the main refinancing rate remained at 2.40% and the marginal lending rate was held at 2.65%. The bank continued to focus on the intensity and duration of the energy-price shock. In contrast, initial jobless claims in the US fell by 22,000 to 187,000 for the week ended July 18, the lowest level since September 1969.

Gold received support from geopolitical risks, but firm Treasury yields and a stronger dollar limited its upside. The situation around the Strait of Hormuz remained highly stressed, with transit through the waterway described as open but under active military and shipping pressure. Brent crude oil prices eased to roughly $97.67 a barrel, while US crude traded near $89.76.