Gold settled today, Friday, ahead of US jobs data due to be released today, but the yellow metal is heading to record Biggest weekly dip Since late November, bond yields have been under pressure as traders prepare for the US Federal Reserve to raise interest rates sooner.
And gold rose in immediate trading 0.1% to $ 1790.90 an ounce, following falling for two sessions, and thus reduced its weekly decline to regarding 2%. US gold futures rose 0.2% to $1,792.60.
“It is clear that the prospect of the (Fed) trying to control rising inflation is raising yields,” said Kyle Rhoda, analyst at IG Markets, adding that the precious metal was losing some appetite on that basis.
Yields on benchmark 10-year US Treasury bonds rose to the highest level since March 2021, raising the opportunity cost of holding gold.
Gold is considered a hedge once morest inflation, but it is vulnerable to rising US interest rates, which increase the opportunity cost of holding the non-yielding yellow metal.
Among other precious metals, silver did not witness little change in spot transactions, to settle at $22.14 an ounce. Platinum rose 0.2% to $966.50 an ounce, while palladium fell 0.6 percent to $1,872.02 an ounce.
