Mumbai: Global gold markets witnessed a day of cautious stability on Friday, as a weakening U.S. dollar helped buoy prices while simultaneously rising Treasury yields prevented the precious metal from making significant gains. The trading session reflected a tug-of-war between mixed economic signals, with investors positioning themselves ahead of the long-awaited U.S. inflation reading.
Gold prices in the international market edged up by nearly half a percent, with spot gold hovering around $4,227 per ounce, while U.S. gold futures climbed about 0.4% to $4,258. Despite Friday’s modest rise, the metal is still bracing for a slight weekly decline, underscoring the cautious sentiment prevailing among traders.
Market analysts say the principal driver behind gold’s support has been the softening U.S. dollar, which touched a near five-week low. A weaker dollar typically makes gold more attractive for buyers holding other currencies, giving the precious metal an upward nudge. However, this positive momentum was tempered by firm U.S. Treasury yields, particularly the benchmark 10-year bond, which climbed as global investors reassessed expectations for monetary policy. Higher yields often weigh on gold, which offers no interest return.
Much of the market’s focus is now centered on the pending U.S. core Personal Consumption Expenditures (PCE) data the Federal Reserve’s preferred inflation gauge. The release, delayed earlier in the week, is expected to strongly influence the central bank’s tone during its upcoming December 9–10 meeting. Current forecasts suggest the Fed may move toward a 25-basis-point rate cut, a scenario that typically favors non-yielding assets such as gold by reducing the opportunity cost of holding them.
Other precious metals also saw gains on Friday, further reflecting broader investor appetite. Silver surged by about 2%, continuing a remarkable rally that has already seen prices more than double in 2025. Palladium and platinum rose by roughly 1%, though their weekly trajectories remain mixed, with platinum likely to close slightly lower.
Overall, gold’s restrained movement captures the uncertainty in global financial markets. While currency weakness and expectations of policy easing lend support, persistent inflation risks and higher bond yields continue to anchor prices. The PCE data, once released, is expected to set the tone for gold’s direction in the coming days either paving the way for a renewed rally or reinforcing the current pattern of cautious consolidation.