Gold crossed the $4,200-an-ounce mark briefly on Friday before giving up some gains, while silver climbed above $60 as easing Treasury yields and a retreat in oil prices supported precious metals.
Spot gold was trading around $4,195 an ounce, up more than 1.5% on Friday, while December gold futures traded near $4,220 with a similar gain.
Silver rose around 3% to $61.15 an ounce, while silver futures traded at $61.45.
The rebound came as the US 10-year Treasury yield eased from recent multi-decade highs to around 5.25%, reducing some of the pressure on bullion.
Gold has recovered over the past few sessions after falling to $4,067 on Wednesday, its lowest level since early August.
The US dollar also weakened, providing additional support to precious metals.
Bond yields and Dollar ease
US 10-year benchmark note cooled off from the recent multi-decade highs and settled around 5.25% on Friday.
The 30-year also stabilized to around 5.67%. This eased pressure on the broader market and also helped bullion.
Lower Treasury yields reduce the returns investors can earn from bonds, making gold more attractive by comparison.
Since gold pays no interest, its appeal tends to increase when bond yields fall and decrease when they rise.
US Dollar also eased, aiding in the rise of the precious metal. A weaker dollar also tends to support gold by making the metal cheaper for buyers using other currencies.
Conversely, a stronger dollar can put downward pressure on prices by increasing the cost of gold for international buyers.
While gold has recovered somewhat, inflation concerns and the outlook for Federal Reserve policy remain important factors for traders.
Oil prices retreat
Oil prices also moved lower after US President Donald Trump said Thursday that his administration was not planning an offensive against Iran before the November 3 midterm elections.
The remarks eased some immediate concerns about further escalation in the Middle East, with Brent crude retreating from around $105 a barrel toward $103.
However, risks to shipping through key routes, including the Strait of Hormuz and Bab el-Mandeb, have increased in recent weeks.
Although oil supplies have stabilized, uncertainty over whether those flows can be maintained amid geopolitical tensions remains a key consideration for traders.
Higher oil prices can feed into inflation, potentially prompting the Federal Reserve to maintain tighter monetary policy or raise interest rates.
Higher borrowing costs generally weigh on non-yielding assets such as gold.
The retreat in crude prices has therefore provided some relief to precious metals by easing immediate inflation concerns, although the broader outlook remains sensitive to developments in energy markets and interest-rate expectations.
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