Gold declines as dollar and US bond yields rise despite weekly gains
Gold prices fell as the dollar and bond yields rose, despite weekly gains
Translated by Qiyas from السياسة — Original source
Gold prices fell during Friday’s trading, weighed down by a stronger US dollar and higher US Treasury yields, following employment data that came in stronger than expected and bolstered expectations that interest rates would remain elevated for longer. Despite the daily decline, the precious metal maintained its weekly gains.
Earlier in trading, spot gold fell 1% to $4,047.10 per ounce, while US gold futures dropped 1.4% to $4,057.20.
In a later update, spot gold rose to $4,065.10 per ounce, according to Kitco data, reflecting a narrowing of losses during the session.
US jobs data showed that non-farm payrolls increased more than expected in October, while the unemployment rate fell to 4.1%. This raised the probability of a December rate hike to 74.8%, up from 72.8% prior to the data release.
According to Reuters, the US dollar rose 0.7% to its highest level since October 29, as yields on 10-year US Treasury bonds climbed, increasing pressure on gold, which offers no yield.
Despite the daily decline, the precious metal posted weekly gains of 4.5%.
In other precious metals, silver rose 0.3% to $51.92 per ounce, and platinum gained 0.5% to $1,524.03, while palladium fell 1.6% to $1,015. All three metals were on track to record weekly gains.
