Gold declines as US Treasury yields advance

Gulf Today Report 

Gold slipped on Friday as US Treasury yields gained, but hope for a large US stimulus kept the metal on course for its best week in five.

Spot Gold fell 0.3% to $1,863.56 per ounce while US Gold futures declined by 0.1% to $1,863.90.

Kyle Rodda, IG Market analyst said, "gold is struggling a bit due to a lift in nominal yields, which came off the back of strong US jobless claims number, also the European Central Bank (ECB) came out a little less dovish than the market would like." 

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ECB left the central bank’s policy as it is, however, the president Christine Lagarde said it is ready to provide support to the economy.

Investors are keenly waiting for the $1.9 trillion stimulus relief proposed by US President Joe Biden.

However, the stimulus is likely to be watered down in the Senate, this will not be beneficial for Gold, it will strip down some of the inflation expectations, added Rodda.

Silver shed 1.1% to $25.67 an ounce but was set to register its best week in five, up 3.7% so far.