Gold Prices Drop as Stronger Dollar Weighs on Metal
Gold prices declined on Friday, reversing earlier gains, as a stronger US dollar and higher US Treasury yields weighed on the non-yielding metal. This has left gold on track for a weekly decline.
The spot price of gold fell by 0.9% to $4,140.06 per ounce at 02:33 p.m. EDT, with a weekly decrease of about 3.4%. US gold futures also settled 1% lower at $4,162.30.
The decline in gold prices comes as the US dollar edged lower but is still on track for a weekly gain. Meanwhile, yields on 10- and 30-year Treasuries hit their highest levels since 2002 on Thursday.
Han Tan, chief market analyst at Bybit, attributed the fall in gold prices to investors being cautious ahead of potential labor market weakness and inflation concerns. Gold has fallen over 20% since the US-Israeli war with Iran began in late February, pressured by expectations that conflict-driven inflation could keep interest rates higher for longer.