Gold prices (GC=F) are retreating from their recent record highs during Friday's trading session, as the US dollar (DX=F) experiences its biggest weekly jump. Yahoo Finance's Jared Blikre and Josh Lipton break down the details, offering key context for the gold rally and the factors contributing to its volatility.

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This post was written by Angel Smith

Video Transcript

JOSH LIPTON: All right, let's move on. Gold losing some ground after hitting a record high in today's trade as the US dollar sees its biggest weekly jump in years. Now, we were actually just talking to Tom Sosnoff about this. So the metal interesting kind of round trip today.

Because Bullion breaks the 2,400 an ounce mark early today, Jared. Fresh record then edges lower. Bottom line, though, front and center geopolitics are top of mind. Investors are looking for your go-to traditional safe havens and gold has been it.

JARED BLIKRE: Let's go back to the Wi-Fi interactive for a quick look at some charts. This is a three-month chart. And you can see gold really started going in the month of April.

And I think there's a huge volatility move here. But gold actually becomes more volatile as it goes up in price. And that's the exact opposite of stocks. So nothing new.

But I think you're right as to the catalyst. We got geopolitics. We got inflation front of mind.

And just another reason why people are piling to the yellow metal. A lot of it has to do with the business cycle and where we are right now. When the Fed is on hold, when it's thinking about cutting rates, that is gold's time to shine.

JOSH LIPTON: Yeah, Mohamed El-erian writing on, Jared, gold prices are up, he says, as more investors view it as a better hedge against geopolitical risk than government bonds due to US inflation concerns.

JARED BLIKRE: That's right.