Gold Prices Rise as Mali Mine Strikes Loom and US Treasury Yields Ebb

Gold prices settled at $4,382.82 on Friday, a gain of 0.9% from the previous day's close. The advance came as yields on benchmark 10-year US Treasuries retreated to around 4.93%, offering relief to gold that pays no interest.

The rebound has been swift since the Federal Reserve raised its policy rate by 25 basis points last Wednesday, with gold adding 2.8% in value. Despite this restrictive backdrop, gold is now trading back above its 50-day moving average, a sign that buyers remain willing to look past the cost of holding a non-yielding asset.

Supply-side jitters are brewing on the production side, particularly in West Africa. Unions have called strikes at the Loulo and Gounkoto mines in Mali, both operated by Barrick Mining, with four- and five-day walkouts threatened from 28 September. A separate 72-hour stoppage is planned at Mali's mining authority and other administrative bodies involved in the sector.

The timing matters, as traders are still digesting the Fed's latest move. The prospect of lost output from two significant West African operations is lending support to sentiment even as tighter policy weighs on the broader macro picture.