2023.09.2910:16:00UTC+00Gold Prices Climb As Dollar And Yields Dip

Gold prices recovered from seven-month lows on Friday but were on track for their biggest monthly fall since February amid growing expectations that U.S. interest rates will remain higher for longer.

Spot gold rose half a percent to $1,873.63 per ounce while U.S. gold futures were up 0.6 percent at $1,890.25.

Treasury yields eased from multi-year highs after Federal Reserve Bank of Richmond President Thomas Barkin said on Thursday that there are various possible outcomes facing the economy and it's too soon to know if another interest-rate increase will be needed in coming months.

Meanwhile, Federal Reserve Chair Powell didn't make any comments on the outlook for economy or monetary policy in his Thursday's speech.

The dollar eased from a 10-month high but was still headed for its biggest quarterly gain in a year ahead of the U.S. data on personal income and spending later in the day that includes readings on inflation said to be preferred by the Fed.

Data showed earlier today that Eurozone inflation hit a two-year low in September - supporting expectations that the European Central Bank will keep interest rates on hold.

Traders also keep an eye on Washington amid continued uncertainty over a potential U.S. government shutdown. The clock is ticking ahead of the Oct. 1 deadline.