Gold Drops as Stronger Dollar and Higher Yields Weigh on Prices

Gold prices fell on Friday and are set for a second straight weekly decline. The drop comes as the US dollar strengthens and Treasury yields rise, making gold less attractive to investors.

Sport gold prices slipped 0.6% to $4,154.78 per ounce by 0205 GMT. This marks a loss of more than 3% for the week so far. US gold futures also lost 0.4% to $4,184.00.

Kyle Rodda, senior financial market analyst at Capital.com, said that 'US interest rate expectations and geopolitical developments in the Middle East are being watched by market participants.' He noted that the September US nonfarm payrolls report will be critical for rate expectations, which could impact gold prices.