Gold prices rose today, Friday, with the emergence of buying operations to take advantage of the decline in prices, after the yellow metal recorded its lowest level in more than a year in the previous session, while investors’ focus shifted to the expected US inflation data.
Gold rose in instant transactions by 1.1 percent to $3,918.59 per ounce by 05:18 GMT, but it is still heading to record a weekly loss of 3.6 percent. US gold futures for December delivery also rose by 1 percent to $3,922.60 per ounce, according to Reuters.
Kelvin Wong, chief market analyst at OANDA, said that today's rise largely reflects an adjustment in investors' positions, after the sharp wave of decline in the previous session pushed a number of short-term momentum indicators to levels indicating severe oversold saturation.
He added that one of the factors that may support gold in the short term is a sudden decline in US Treasury bond yields, which may limit the strength of the dollar.
On Thursday, gold prices in spot transactions recorded their lowest levels since October 2025, with the rise in oil prices and the decline in hopes for reaching a settlement to the conflict in the Middle East, which raised fears of high inflation and the continuation of interest rates at high levels.
Market expectations indicate an 89 percent probability of raising US interest rates by 25 basis points in December, while the probability of raising them by 50 basis points is about 11 percent, according to the “Feed Watch” tool of the CME Group.
Although gold is usually considered an inflation hedge, rising interest rates increase the opportunity cost of holding the non-yielding metal, making it less attractive to investors.
New York Federal Reserve Bank President John Williams said on Thursday that further increases in interest rates are likely, as part of the US central bank's efforts to reduce high levels of inflation in an economy that still enjoys a degree of strength.
Data showed that the number of Americans who filed new applications for unemployment benefits increased more than expected last week, but it remained at a level consistent with the stability of the labor market.
Markets are now awaiting the release of US Producer Price Index data, scheduled to be published at 13:30 GMT.
As for other precious metals, silver rose in spot transactions by 0.5 percent to $50.27 per ounce, and palladium rose by 1.8 percent to $1,011.65, but the two metals are also heading to record weekly losses.
Platinum also rose by 1 percent to $1,533.29 per ounce, heading for limited weekly gains.
Sheikh Khalid bin Abdullah Al Khalifa, Deputy Prime Minister of Bahrain, witnessed the signing ceremony of contracts for the implementation of the fourth phase of the Busaiteen Bridge project, funded by the Saudi Fund for Development through a grant provided by Saudi Arabia worth more than 937 million riyals ($249.8 million) for all its phases.
The CEO of the Saudi Fund for Development, Sultan Al-Murshid, participated in the signing ceremony, which was attended by the Bahraini Minister of Works, Engineer Ibrahim Al-Hawaj, and the Deputy Saudi Ambassador to Bahrain, Abdullah bin Tawla.
The project will contribute to connecting Muharraq Island to the capital, Manama, facilitating traffic movement and its flow, linking regions together and bridging the gap between them, as it represents an important tributary to the development of the transportation system in Bahrain by enhancing the efficiency of the road network and raising its capacity.
For his part, Al-Murshid explained that this project comes within the framework of the close development relations between the two sides that extend for about 50 years, adding that its current fourth phase will contribute to supporting and keeping pace with the requirements of social and economic growth towards achieving progress and prosperity in Bahrain.
In turn, Al-Hawaj stressed that the signing of the contracts reflects the depth of the established fraternal relations and the close development partnership that brings together the two countries, and reflects the important role played by the Fund in supporting strategic projects aimed at developing infrastructure and promoting sustainable development paths in Bahrain.
This project comes within a long track record of development cooperation between Saudi Arabia and Bahrain, extending for about five decades, during which the Fund contributed to financing 34 development projects and programs in the sectors of energy, transportation, social infrastructure, and others, through soft development loans and grants provided by the Kingdom in amounts exceeding 10.9 billion riyals ($2.907 billion).
These contributions reflect Saudi Arabia's firm approach to Bahrain, supporting its development priorities, and contributing to the establishment of a sustainable infrastructure that enhances the elements of growth and prosperity.
