Gold and Silver Rise as Weak U.S. Manufacturing Data Weighs on Treasury Yields

Gold and silver prices ended Friday’s North American session on a positive note, supported mainly by weaker-than-expected U.S. manufacturing data and a decline in Treasury yields. Although gold experienced choppy trading early in the session, it gained strength later in the day and stabilized, while silver outperformed with more notable gains.

Key U.S. economic data, particularly the April ISM Manufacturing PMI, indicated that while the sector remains in expansion territory, the pace of growth has slowed. This, along with the S&P Global PMI report showing only modest expansion, raised concerns about a potential slowdown in U.S. industrial activity. As a result, Treasury yields came under pressure, a development that typically benefits precious metals like gold and silver.

Meanwhile, markets continue to assess the implications of recent meetings by major central banks, including the Federal Reserve, the European Central Bank, and the Bank of England. The general takeaway is that policymakers are not in a hurry to cut interest rates. However, the latest soft economic data has strengthened expectations that slowing growth could eventually influence future monetary policy decisions.

Geopolitical tensions related to U.S.-Iran relations continued to support energy markets, although crude oil prices saw a modest pullback during the session. This slight decline in oil helped ease inflation concerns and contributed to lower bond yields, further supporting gold and silver.