Gold prices recovered modestly on Friday, gaining 0.2% to $4,295.5 an ounce. The rebound follows a steep 20% slide that began after the U.S.-Iran conflict erupted in late February.
Silver slipped 0.2% to $64.31 an ounce, moving opposite to gold.
U.S. Treasury yields rose sharply, with the five-year note climbing above the 5% mark for the first time since 2007 and most maturities reaching their highest levels in almost two decades. The higher yields have reinforced expectations that the Federal Reserve will need to deliver additional tightening.
Market pricing now reflects at least three Fed rate hikes by April of next year, up from earlier expectations. The central bank continues to target a 2% inflation rate, and Federal Reserve Governor Michael Barr has warned that further rate increases are likely needed to achieve that goal.
The combination of stronger U.S. data, elevated oil prices and the prospect of more aggressive monetary policy helped curb the recent gold sell‑off, stabilising the metal ahead of the upcoming trading week.
