Gold prices recover to above $4,190 per ounce

Gold prices saw a significant recovery on Friday, rising over 1% to reach approximately $4,190 per ounce. This rebound follows a period of volatility where prices had recently hit two-month lows.

The upward movement was driven by a softening US dollar and declining US Treasury yields. Additionally, a reduction in oil prices—following comments from US President Donald Trump regarding the avoidance of military action against Iran before the November midterm elections—helped ease immediate geopolitical and inflationary concerns.

While short-term momentum has turned bullish, market analysts note that long-term direction remains tied to Federal Reserve policy. Investors are closely monitoring upcoming US inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), to gauge potential interest rate shifts. Some analysts, including those from HSBC and State Street, maintain long-term bullish outlooks due to central bank demand and global debt levels, though they warn that further Fed tightening could impact prices.