Gold Holds Gains With Haven Demand and Lower Yields in Focus

(Bloomberg) -- Gold steadied after rising the most in more than two weeks on Thursday as investors sought safety from a stocks selloff in bonds, pushing down Treasury yields.

Bullion traded near $4,160 an ounce after climbing 1.6% in the previous session. Wall Street had rotated out of chipmakers as concerns about the AI investment boom deepened, fueling a global bond rally — though pressure on stocks was easing on Friday.

Treasury yields slid as much as 12 to 15 basis points across the curve, lifting gold, which typically does well in a lower-rate environment as it doesn't pay interest.

The precious metal recouped losses following the release of a hotter-than-expected September inflation print on Wednesday, which raised bets for a rate-hike in October. Investors are set to parse Federal Reserve Chairman Kevin Warsh's remarks at an International Monetary Fund meeting in Bangkok at 10.30 a.m. local time.

Spot gold was down 0.3% at $4,158.03 at 7:48 a.m. while silver also edged lower 0.5% to $57.13. Platinum and palladium were largely unchanged. The Bloomberg Dollar Spot Index was flat, after falling by 0.3% in the earlier session.