Gold deepened its losses during Friday’s trading, affected by the acceleration of the selling wave in the precious metals market, coinciding with the rise in the value of the dollar and US Treasury bond yields, which reduced the attractiveness of non-yielding assets.
Gold fell in instant transactions by 3%, reaching $3,908.13 per ounce, after it had recorded a decline of about 2%, recording $3,939.65 earlier in the session, so that the yellow metal continued its decline, recording its lowest levels since November 2025.
This steady decline came as investors re-evaluated the path of US monetary policy, in light of concerns about the continuation of inflationary pressures for a longer period, which may prompt the Federal Reserve to keep interest rates high or move towards tightening monetary policy again.
High interest rates and rising bond yields increase the opportunity cost of owning gold, while the rise of the US currency imposes additional pressure on the metal in which it is denominated, making it more expensive for holders of other currencies.
The losses were not limited to gold alone, but extended to include other precious metals. Silver fell in spot transactions by 5.3% to record $49.63 per ounce, a clear reflection of the widening scope of profit-taking operations and the reduction of investment positions in the markets.
