Gold Prices Surge Amid Yield Decline and Energy Price Drop
The gold market experienced a relief rally on Friday as yields and energy prices declined. Gold closed at $4,382.82 per troy ounce, up 0.9% for the day. The decrease in US Treasury yields and softer energy prices provided a welcome breather for bullion.
The yield on the benchmark 10-year US note retreated to around 4.93%, which helped gold recover from its earlier losses. Crude oil also declined, trading at $104 a barrel, as workers in Saudi Arabia continued repairs to the East-West pipeline following a Houthi attack.
Despite the Federal Reserve's decision to raise its policy rate by 25 basis points last Wednesday, gold has managed to add 2.8% since then. Central banks around the world are pulling in different directions, but the metal has climbed back above its 50-day moving average.