Latest Developments in the Gold Market
Selling in the stock market and concerns over investments in artificial intelligence have pushed investors toward US government bonds, which are considered safer assets.
Gold held on to most of the previous day’s gains. After rising 1.6% on Thursday, gold recorded its strongest daily increase in more than two weeks. On Friday, the price slipped 0.3% to $4,158 per ounce.
Selling in the stock market and concerns over artificial intelligence investments pushed investors toward US government bonds, which are considered safer assets. Increased demand for bonds lowered their yields, making gold, which pays no interest, more attractive to investors.
Although higher-than-expected US inflation strengthened expectations of an interest rate hike, gold recovered its earlier losses. Investors are now watching for upcoming statements from the US Federal Reserve (Fed).
Among other precious metals, silver fell 0.5% to $57.13 per ounce. Platinum and palladium prices remained largely unchanged.