Gold prices rise as the dollar and U.S. Treasury yields fall

Gold prices rose on Friday, buoyed by a weaker dollar and lower U.S. Treasury yields, as investors assessed the economic fallout from the escalating conflict in the Middle East.

Spot gold rose 0.7% to $5,112.34 per ounce, while U.S. gold futures for April delivery fell 0.2% to $5,115.80.

Despite this rise, the precious metal has lost about 1 percent since the start of the week, affected by diminished expectations of a U.S. interest rate cut in the near term, amid rising energy prices and the resulting inflation concerns.

The dollar weakened slightly, making dollar-denominated commodities such as gold less expensive for holders of other currencies, Yields on 10-year U.S. Treasury bonds also fell, supporting demand for gold, as it is an asset that does not generate periodic returns such as interest or dividends

As for other precious metals, the price of silver in spot trading rose 1.5 percent to $85.03 per ounce.

Platinum also rose 1.3% to $2,159.01, while palladium rose 0.8% to $1,630.71