Gold rises over 1% as dollar weakens, Treasury yields retreat

Gold prices rose by over 1% on Friday as the U.S. dollar weakened and Treasury yields retreated, making the precious metal more attractive to investors. The rally in gold was driven by concerns over rising oil prices and potential energy supply disruptions linked to the Middle East conflict, which could fuel inflation and prompt central banks to maintain or raise interest rates.

St. Louis Federal Reserve President Alberto Musalem suggested that further monetary tightening may be required to bring inflation back to the central bank's 2% target within a reasonable timeframe, with rates potentially increasing over the next six to nine months. While higher interest rates can weigh on gold, as it doesn't offer any yield, persistent central bank demand and concerns about elevated government debt could provide support for the metal.

Silver and platinum also saw gains, with silver rising 1.7% to $60.19 an ounce and platinum increasing 2.1% to $1,678.15 per ounce.

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