Gold prices looked on course for a first weekly decline in the last three as elevated Treasury yields and a firm U.S. dollar dented safe-haven bullion’s appeal even as the metal steadied on the day.
Early Friday, spot gold was flat at $1,726.96 U.S. per ounce. U.S. gold futures were steady at $1,725.50 per ounce. The metal hit a one-week low of $1,721.46 in the previous session.
For the week, the metal has lost over 1% as the U.S. dollar climbed against a basket of major currencies, leaping over a four-month high on Thursday.
U.S. Treasury yields also jumped after the Treasury Department saw tepid interest for an auction of seven-year notes.
Higher returns on Treasury bonds generally increase the opportunity cost of holding non-yielding bullion, while a strong dollar makes it expensive for non-U.S. buyers.
Another bond market sell-off is likely in the next three months following the recent rout in financial markets, according to analysts.
Silver rose 0.1% to $25.05 U.S., holding above an over two-month low of $24.39 U.S. per ounce hit on Thursday.
Palladium rose 0.2% to $2,614.51 U.S. and platinum fell 0.1% to $1,146.11 U.S.