Gold steadies near $4,170 as softer dollar and lower yields support bullion

Spot gold was little changed in early U.S. trading on Friday, quoted near $4,172.10 an ounce, up $2.30 (0.06%). Spot silver rose modestly to about $57.63 an ounce, gaining $0.33 (0.57%). The moves came as the dollar index slipped toward 101.9 and the 10-year Treasury yield fell to roughly 5.11%, after a weekly decline of about 14 basis points.

Federal Reserve Chair Kevin Warsh, speaking at the International Monetary Fund meetings in Bangkok, did not indicate a rate increase for October, prompting traders to cut the odds of an October hike to around 15%, while the chance of a December move stayed near 89%. Inflation data remain mixed: September consumer-price inflation rose 0.6% month-on-month and 3.7% year-on-year, and producer prices jumped 1.3% monthly, driven by a 10.8% surge in energy costs.

"The market is balancing stubborn inflation against concerns about economic resilience," analysts noted.

The softer dollar and lower yields have helped buoy precious metals after Thursday’s rebound, but elevated oil prices and ongoing inflation pressures keep the outlook for further tightening in focus ahead of the Fed’s Oct. 27-28 policy meeting.

Geopolitical tensions in the Strait of Hormuz, where recent attacks on commercial vessels have heightened uncertainty, continue to affect energy markets. The International Energy Agency announced an accelerated release of about 100 million barrels of emergency oil stocks, while U.S. crude inventories fell by 8.6 million barrels last week. Brent crude traded near $105.26 a barrel and WTI around $97.11.

Global equity futures were mixed before the U.S. open, with the S&P 500 up 0.2%, the Dow up 0.4% and the Nasdaq down 0.1%. Asian markets recovered some losses, led by South Korea’s Kospi (+2.1%) and Japan’s Nikkei 225 (+1.4%). European indices were mixed, with Germany’s DAX gaining about 1%.

Technical analysis suggests gold could aim for resistance near $4,201-$4,217, while downside support lies around $4,142-$4,148. Silver’s next upside target is near $57.86-$58.28, with support around $56.92.