Gold prices slipped on Friday but hovered near 10-week high after gaining 3% in the previous session, its biggest one-day gain in more than two years.
Gold prices recorded its largest daily percentage gain on Thursday since June 2016 as global stock markets extended losses. Fears over rising bond yields also drove traders toward safe-haven assets.
However, analysts expect rising interest rates would likely remain a concern for gold prices. Interest rate increases and higher U.S. bond yields dampen appeal for gold, which offers no yield. They also tend to boost the dollar.