Gold Stalls Near $4,300 Amid Elevated Yields and Rate Hike Bets

Gold prices steadied at $4,280 on Friday after two sessions of declines. This stability was due to elevated US yields and inflation expectations that continued to influence market expectations for further tightening by the Federal Reserve.

The US 10-year Treasury yield slipped by nearly 2 basis points to 5.192%, while core Durable Goods Orders rose above estimates in August, with July's numbers revised higher.

Consumer sentiment weakened, with the University of Michigan index falling to 48.1 from 51.7, as one-year inflation expectations rose to 4.6% from 4% and five-to-ten-year expectations edged up to 3.4% from 3.3%

The odds of an October rate rise were placed at 64%, with the implied probability for December nearly 93%. Oil's retreat helped ease pressure on the US dollar, which fell by 0.22% to 101.02.

Technical indicators showed a bearish bias, with the Relative Strength Index staying below the 50 neutral mark. If gold breaks below the wedge support around $4,200, a rapid drop toward the August low of $4,019 is expected.