Gold rose slightly on Friday, as it continues to await further positive momentum to regain strength in the near term. The yellow metal is currently looking to break the daily pivot point of $4,209; if it succeeds, it could retest the next resistance levels at $4,266 then $4,312. On the downside, if the price settles below the aforesaid pivot point, it may decline toward support levels near $4,132 then $4,092.
Global financial markets remained volatile as investors assessed shifting expectations around monetary policy, economic growth, and energy supplies. The U.S. dollar climbed to a 17-month high, supported by rising Treasury yields, while oil prices declined as markets weighed mixed signals regarding global supply and geopolitical risks. At the same time, U.S. Treasury yields surged to their highest levels in 24 years, highlighting growing concerns over inflation, government borrowing needs, and the outlook for interest rates. Together, these developments continued to shape investor sentiment across currency, energy, and fixed-income markets.
Market Watch
Dollar Hits 17-Month High
The U.S. dollar climbed to its highest level in around 17 months during Friday’s trading session, supported by rising U.S. Treasury yields and growing expectations that the Federal Reserve will maintain a relatively tight monetary policy amid persistent inflationary pressures.
The U.S. Dollar Index (DXY), which measures the performance of the dollar against a basket of six major currencies, rose above the 102 level, approaching its highest level since April 2025. Market data showed the index reaching around 102.14 during the session, compared with a previous close of 102.10.
The dollar’s strength came amid a sharp sell-off in global bond markets, which pushed the yield on 10-year U.S. Treasury bonds to levels not seen since 2002, before yields stabilized somewhat during Friday’s session. Higher U.S. Treasury yields generally increase the attractiveness of dollar-denominated assets.
Meanwhile, the euro came under significant pressure, falling toward its lowest level since May 2025 amid concerns over France’s fiscal situation and pressure in European bond markets. Concerns over higher energy prices and inflation also contributed to the pressure on the European currency.
Investors are now awaiting the release of the U.S. jobs report, which could provide further indications about the strength of the labor market and the inflation outlook, helping markets assess the Federal Reserve’s next steps regarding interest rates.
The dollar was also on track to record its third consecutive weekly gain, as markets continued to reassess expectations for U.S. monetary policy while European and Asian economies faced pressures from higher borrowing costs and energy prices.
Oil Prices Decline as Markets Assess Mixed Supply Signals
32Oil prices declined during Friday’s trading session after rising sharply in the previous session, as investors assessed mixed signals regarding global supply levels, with indications of a recovery in some Middle Eastern oil exports offset by continued geopolitical risks threatening shipping and crude supplies.
Brent crude fell by around 0.7% to $101.61 per barrel, while West Texas Intermediate (WTI) declined by approximately 0.9% to $92.02 per barrel during morning trading, with both benchmarks heading toward weekly losses.
Pressure on prices came as indicators pointed to an improvement in oil exports from the Middle East. Saudi Arabia resumed tanker loading operations at the Yanbu port after the East-West pipeline resumed operations. Estimates also indicated a recovery in Gulf oil exports during the previous week, strengthening expectations of improved global supply.
At the same time, markets continue to face supply and transportation risks amid ongoing tensions between the United States and Iran and increased U.S. military presence in the Middle East. These risks have limited the downside pressure on oil prices despite signs of improving supply conditions.
China’s decision to suspend exports of refined petroleum products during October also raised concerns about fuel availability in global markets, as Beijing seeks to maintain adequate domestic inventories. The decision provided some support to oil prices but came amid a market simultaneously responding to signs of improving crude supply.
In the United States, data from the Energy Information Administration (EIA) showed that U.S. crude oil inventories increased by approximately 922,000 barrels in the week ending September 25, reaching 427.3 million barrels, compared with analysts’ expectations for a decline of 264,000 barrels. The unexpected inventory build added another factor weighing on crude prices.
Investors are also focusing on the upcoming OPEC+ meeting on Sunday, with expectations that the group may maintain its current oil production targets for November, while markets continue to monitor developments in Middle Eastern supplies and the broader geopolitical situation.
U.S. Treasury Yields Rise to Their Highest Level in 24 Years
U.S. Treasury yields continued to rise to historically high levels, with the 10-year Treasury yield reaching its highest level in 24 years during Thursday’s trading session, amid a broad sell-off in global bond markets and growing pressure on government borrowing costs.
The yield on the 10-year U.S. Treasury note rose to around 5.342% on Thursday, its highest level since early 2002, also surpassing its previous peak recorded in 2007. The 10-year Treasury yield is a key benchmark for global borrowing costs and the pricing of a wide range of financial assets.
The increase came after the largest quarterly rise in U.S. Treasury yields this century during the third quarter of 2026, as bond markets faced strong selling pressure. Market reports indicated that concerns over inflation, government financing needs, and elevated borrowing levels contributed to the pressure on longer-term bonds.
Yields eased slightly after reaching their highs, as some investors returned to the bond market at the elevated yield levels. By Friday, the 10-year Treasury yield was trading near 5.24%, down from Thursday’s peak.
The bond market moves come as investors await the release of U.S. employment data, which could provide fresh signals about the strength of the labor market and the Federal Reserve’s monetary policy path. Markets are also reassessing interest-rate expectations amid persistent inflation concerns and higher energy costs.
Rising Treasury yields affect a broad range of financial markets, as they increase borrowing costs for governments, companies, and households. They can also affect equity valuations and other assets by raising the risk-free rate used by investors.