Gold climbs back above $3,900 after hitting a 13-month low, though weekly losses continue.

Gold prices rebounded above $3,900 an ounce on Friday, recovering from a 13-month low recorded in the previous session. However, the precious metal remained on track for substantial weekly losses as rising U.S. Treasury yields, a stronger dollar and expectations of further Federal Reserve interest-rate hikes continued to weigh on market sentiment.

Spot gold rose 1% to $3,915.31 an ounce by 0322 GMT, although it remained down 3.5% for the week. U.S. gold futures for December delivery advanced 0.9% to $3,919.60. Silver edged higher to $50.0785 an ounce, while platinum gained 0.2% to $1,524.00. Spot palladium increased 0.3% to $1,001.40, and palladium futures added 0.5% to $997.00. Meanwhile, the U.S. Dollar Index was little changed at 103.21.

Gold has faced mounting selling pressure since Tuesday, when stronger-than-expected U.S. consumer inflation figures and hawkish remarks from Federal Reserve officials led investors to reassess the outlook for monetary policy.

U.S. Treasury yields extended their upward momentum on Thursday, with some maturities rising by more than 12 basis points. Short-term Treasury securities experienced the largest increases, reflecting their greater sensitivity to changing expectations for interest-rate policy.

Additional hawkish comments from Fed policymakers further reinforced expectations of tighter monetary conditions. Chicago Fed President Austan Goolsbee said on Thursday that the central bank needed to bring inflation under control before economic activity became overheated.

San Francisco Fed President Mary Daly also signalled that further interest-rate increases would likely be required, noting that inflationary pressures remained elevated across sectors beyond those directly affected by tariffs and energy prices.

Financial markets are now fully pricing in a 25-basis-point rate increase in December, while some investors are increasingly considering the possibility of a larger 50-basis-point hike. Expectations of additional monetary tightening have, in some cases, extended beyond the December meeting.

Inflation concerns were further reinforced by rising energy prices after U.S. President Donald Trump played down the prospects of a diplomatic agreement with Iran. Brent crude prices approached $96 a barrel on Thursday after Trump said Washington did not need an agreement with Tehran and suggested that military action remained a possibility.

ANZ analysts attributed gold’s decline below the $3,900 threshold to a combination of higher energy costs, stronger economic data, rising bond yields and a U.S. dollar trading above 103, all of which have undermined investment demand for the precious metal.

The analysts also warned that the Federal Reserve could consider more aggressive monetary tightening, including a 50-basis-point rate increase in December, as economic resilience strengthens the case for further action against persistent inflation.