Gold prices rebound from 13-month low as major investors return

Gold rebounds from a 13-month low as investors buy the dip despite rising Treasury yields and Fed risks.

Gold prices rose Friday as investors returned to the precious metal following a sharp selloff that pushed bullion to its lowest level in more than a year.

The recovery came despite growing expectations of further Federal Reserve interest-rate increases, which have driven Treasury yields higher and weakened demand for non-yielding assets.

Spot gold climbed 0.42% to $3,892.926 an ounce, while December gold futures advanced 0.29% to $3,896.47, according to the latest market quotes.

Bloomberg described renewed buying interest from long-term investors following Thursday's decline to a 13-month low, although bullion remained on course for a weekly loss.

The precious metal lost more than 6% over three trading sessions as stronger-than-expected U. S. inflation figures prompted investors to reassess the Federal Reserve's interest-rate outlook.

Gold briefly fell to its lowest level in 13 months on Thursday, extending a decline that began as expectations for tighter monetary policy intensified.

The selloff coincided with a sharp increase in U. S. Treasury yields , with some securities recording gains of more than 12 basis points.

New York Fed President John Williams and Chicago Fed President Austan Goolsbee highlighted continued price pressures, while San Francisco Fed President Mary Daly indicated that additional tightening could be necessary.