Gold Holds Near $4,160 After Biggest Gain in Two Weeks on Haven Demand

Gold steadied near $4,160 an ounce on Friday after posting its biggest gain in more than two weeks, as investors moved into the metal on safety concerns over a stock selloff and falling Treasury yields.

Bullion climbed 1.6% in the previous session. Spot gold was down 0.3% at $4,158.03 by 7:48 a.m., while silver edged lower by 0.5% to $57.13. Platinum and palladium were largely unchanged.

Why Investors Moved to Gold

Wall Street rotated out of chipmakers as worries about the AI investment boom deepened, and that fuelled a global bond rally. Treasury yields slid as much as 12 to 15 basis points across the curve, which lifted gold. The metal typically performs well in a lower-rate environment because it pays no interest.

Pressure on stocks was easing on Friday, but the shift into bonds and gold had already done its work.

Inflation Print and Fed Watch

Gold recouped losses that followed a hotter-than-expected September inflation print on Wednesday. That reading raised bets for a rate hike in October.

Investors are set to parse remarks from Federal Reserve Chairman Kevin Warsh at an International Monetary Fund meeting in Bangkok at 10.30 a.m. local time. His comments will shape expectations on the rate path.

Dollar Flat

The Bloomberg Dollar Spot Index was flat, after falling by 0.3% in the earlier session. A steady dollar offers little fresh direction for the naira, while gold's climb supports the valuation of Nigeria's external reserves, which are held partly in the metal.