Gold recovers above $4,150 as US yields retreat ahead of US September jobs data

Gold price hits near $4,180 in early Asian session on Friday as US Treasury bond yields retreat from multi-decade peaks. However, potential upside may be limited by lingering inflation concerns from high energy costs and possible higher US interest rates. The US 10-year Treasury yield fell to 5.24% after hitting a new multi-decade peak of 5.34%.

Geopolitical uncertainty, particularly regarding stalled US-Iran ceasefire talks, provides a safe-haven underpinning, while higher oil prices pose an inflation risk. The next major market mover will be the US September employment data, which could shed light on the US interest rate path. Economists anticipate the Nonfarm Payrolls to show a 90,000 job increase in September, with the Unemployment Rate remaining steady at 4.1%.

Analysts warn that any signs of a Fed rate hike, rising energy prices, or Middle East tensions could dampen gold market sentiment. Gold's technical analysis suggests a bearish near-term bias, with price trading below the 100-day moving average and hovering near the lower half of the Bollinger Bands. Immediate support can be found at the lower Bollinger band near $4,130, while resistance levels include the 100-day MA at $4,285 and the upper Bollinger band around $4,470.

Central banks hold the majority of gold reserves, using the metal to bolster currencies during turbulent times due to its inverse correlation with the US Dollar and risk assets.