Gold Bounces Back as Fed Rate Hike Odds Remain Elevated Amid Soaring Yields

Gold prices rebounded on Friday after two days of losses, reaching $4,280 as US bond yields remained high and inflationary concerns continued to mount. The Federal Reserve's (Fed) likelihood of further tightening monetary policy remains elevated, with traders betting on a rate hike at the October meeting.

The recovery in gold prices comes despite the 10-year Treasury yield inching down nearly 2 basis points to 5.192% on Friday. The US Dollar Index (DXY), which tracks the buck's performance against a basket of six currencies, was down 0.22% at 101.02.

WTI crude oil prices dropped over 3% to $91.00 per barrel amid progress in US-Iran negotiations, easing some pressure on the greenback and contributing to gold's rebound.