Gold turned modestly lower on Friday as some players exited positions ahead of a long U.S. weekend, but registered its biggest weekly percentage gain in a month.
U.S. Treasurys prices edged up as traders evaluated the likelihood of the U.S. Federal Reserve pulling back on bond purchases this year and whether a recent sell-off was overdone.
The dollar rose against the euro on Friday, recovering from an early swoon after better-than-expected U.S. durable goods data for April eased investor concerns about the U.S. economy.
Oil prices rose after a report of a gasoline unit shutdown at a refinery, and as traders bought contracts to cover short positions ahead of a long U.S. holiday weekend.
Asian shares were mostly higher, back to earlier gains on Friday, after the Nikkei plunged as much as 3 percent at one point in another volatile trading day.
The dollar was on track for its biggest daily drop in more than five weeks against the yen after a sharp slide in Japanese stocks and weak Chinese factory activity data.
Stocks closed modestly lower in a volatile session as market participants weighed better U.S. economic data against the fears the Fed may soon start to curtail its bond buying.
U.S. Treasury debt prices rose after the Treasury saw solid demand for new inflation-linked bonds, though benchmark yields held above 2 percent as traders worried about how high yields might rise whenever the U.S. Federal Reserve decides to taper its bond purchases.
Gold settled higher as the dollar remained under pressure and as a senior Federal Reserve official said the central bank is in no hurry to start winding down its economic stimulus.
Oil prices pared losses after falling to a three-week low on Thursday in a broader commodities sell-off, supported as selling in U.S. equities tapered off.
Japan's stock market finished Thursday's session 7 percent lower, in a hugely volatile session which saw the Nikkei gain 2 percent in early trade only to dive to a one-week low late in the session.
Stocks closed down 1 percent after the minutes from the last Fed policy setting meeting suggested the central bank could begin tapering bond purchases sooner than the market expects.
U.S. Treasury yields on the benchmark 10-year note rose above the key two percent level on Wednesday, the highest level in two months.
Crude dropped on Wednesday, after data showing a surprise jump in U.S. gasoline stockpiles sparked worries that summer demand could be weaker than expected.
Gold settled lower on Wednesday, giving up earlier gains after U.S. Federal Reserve Chairman Ben Bernanke warned of the risks of holding interest rates too low for too long, which boosted the dollar.
The dollar rallied to trade at a fresh 4 1/2-year high against the yen after Fed Chairman Ben Bernanke warned that holding interest rates too low for too long has its risks.
European shares closed higher on Wednesday, mirroring gains in the U.S. after Federal Reserve Chairman Ben Bernanke reiterated his commitment to maintaining loose monetary policy. However, both European and U.S. shares pared some gains after Bernanke's more hawkish comments in the Q&A session.
The Bank of Japan ended a two-day meeting on Wednesday with a decision to leave monetary policy unchanged and a promise to monitor volatile bond markets.
Confidence returned to most Asian stock markets on Wednesday after investors were reassured that global central banks would not pare down their economic stimulus programs.
The Fed Chairman could give the dollar bulls reason to pause, ending its rally on rumors of the central bank unwinding its aggressive monetary stimulus program.
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