The Argor-Heraeus SA gold bar with two hundred and fifty grams in the middle, sits in this organized image of Solar Capital Gold Zrt. in Budapest, Hungary.
Akos Stiller | Bloomberg | Getty Images
Gold prices were on track for the first weekly decline in three due to high Treasury yields and a strong U.S. dollar rejected a safe-haven bullion claim even as the metal stood on the day.
Concepts
Flat spot gold was at $ 1,726.96 per ounce before 0126 GMT on Friday. U.S. gold futures were stable at $ 1,725.50 per ounce. The metal hit a week low of $ 1,721.46 in the previous session.
For the week, the metal has lost more than 1% as the U.S. dollar climbed against a basket of major currencies, jumping over a four-month high on Thursday.
U.S. Treasury yields also jumped after the Treasury Department saw strong interest for an auction of seven-year-old pounds.
Higher yields on Treasury bonds typically increase the opportunity cost of holding non-yielding bullion, while a strong dollar makes it expensive for non-U.S. buyers.
There are likely to be further bond market sales in the next three months following the recent downturn in financial markets, according to analysts surveyed by Reuters.
European countries tighten COVID-19 restrictions as Germany, Europe’s largest economy, has seen the highest rise in coronavirus cases since January, raising further doubts about the pace of economic recovery .
Gold is often regarded as a safe investment in times of political and economic uncertainty.
Asian markets are expected to open higher on Friday after U.S. shares rose as investors measured the outlook for economic growth and inflation and welcomed progress in vaccine spreads.
The number of Americans filing new claims for unemployment benefits fell to a low last week.
Cash rose 0.1% to $ 25.05, holding above a two-month high of $ 24.39 per ounce on Thursday.
Palladium rose 0.2% to $ 2,614.51 and platinum fell 0.1% to $ 1,146.11.