Gold prices fall as dollar and yields rise
Picture used for illustrative purpose. File
Gulf Today Report
Gold declined on Friday following gains in US dollar and Treasury yields, although optimism for additional US stimulus has aided gold in recording second straight weekly gain.
Spot gold was down 0.3% to $1,907.66 per ounce but was up 0.5% so far this week. US gold futures shed 0.3% to $1,908.80.
Kyle Rodda, IG Market analyst said, "in the short term, we just seem to lack a catalyst to drive prices higher."
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A firm dollar makes bullion more expensive for other currency holders also higher bond yields enlarges the opportunity cost of holding the non-interest yielding gold.
"Gold still harbours the potential to reclaim the $2,000 handle. (But) there appears to be a risk of a pullback in the Fed's asset purchasing programme should a US economic outperformance crystalize in the latter part of the year," said FXTM market analyst Han Tan.
