Gold futures for the first month rose $ 22.70, or 1.2 percent, to $ 1,871.50 an ounce, up three of the last four weeks. The yields on the 10-year government bond stood at 3.156% on Friday, compared to 3.041% on Thursday. Higher government bond yields can make gold, which does not pay investors a steady income from simply owning the yellow metal, less attractive to hold. Analysts and investors say the sharp rise in inflation could push the US Federal Reserve to tighten monetary policy more aggressively at its meeting next week. However, some investors believe that even if the Fed raises interest rates aggressively, it will find it difficult to reduce persistent inflation. This could contribute to the profits of gold, which has outperformed stock and bond yields this year. “The Fed will try to tame inflation, but even with higher interest rates, it will be difficult,” said Juan Carlos Artigas, head of global research at the World Gold Council. Higher gold prices boosted mining stocks. Newmont rose 3.7% on Friday, while Barrick Gold rose 5.3%. Gold prices climbed to near record levels this year after the Russian invasion of Ukraine. Since then, prices have plummeted, with the investment climate sharpening as the war continues and the Fed launches a campaign to raise interest rates.
