Gold futures rise 0.54% after four days of declines

Gold futures rose on Friday, September 25, breaking a four-session losing streak. The move followed a pullback in short-term US Treasury yields and a softer dollar. On the Comex division of the New York Mercantile Exchange, gold futures for September delivery rose 0.54% to settle at $4,286.20 per troy ounce. For the full week, the metal dropped 2.27%.

The metal remained pressured over the week by volatility across global fixed-income markets and expectations of tighter monetary policy in major developed economies. Progress in diplomatic discussions between the United States and Iran helped reduce oil prices, which coincided with lower short-term Treasury yields and a decline in the dollar abroad. Longer-term US sovereign yields continued to show tension after reaching multi-decade highs during the previous two days.

Gold may face challenges while bond yields and the dollar stay high, according to Ole Hansen, chief strategist at Saxo Bank. He noted that steady ETF purchases and exceptionally strong demand from China indicate investors are not leaving the metal. Hansen stated that some investors appear to be buying gold because the financial tensions visible in the bond market are becoming harder to overlook.