The chart of gold prices shows that global gold prices have stabilized amid falling U.S. government bond yields.

Gold prices stabilized on Thursday amid falling U.S. government bond yields. Investors are also showing caution as they await Friday’s release of the U.S. Non-Farm Payrolls report, which may provide insight into the Fed’s further trajectory of interest rate hikes.

By 02:39 GMT, the spot gold price remained at $1,767.39 an ounce. Gold futures rose 0.4 percent to $1,783.90 an ounce during U.S. trading.

Gold price during recession

The yield on 10-year U.S. Treasuries retreated from a one-week high, lowering the opportunity cost of holding gold. This also affected gold prices during the recession. 

Meanwhile, the U.S. dollar continues to trade near weekly highs, limiting gains in gold prices.

Earlier this week, Fed officials signaled a continued commitment to raising interest rates to levels that would more substantially rein in economic activity and inflation, which have reached their highest levels since the 1980s.

Raising interest rates reduces the appeal of gold, which does not generate interest income.

After this week’s release of two strong reports on the U.S. economy, investors’ attention is focused on Friday’s expected jobs report, which may clarify the prospect of the Fed tightening monetary policy to combat persistent inflation.

Spot silver fell 0.4 percent to $19.97 an ounce; platinum fell 0.2 percent to $896 an ounce; and palladium fell 0.3 percent to 2011.42 an ounce.