Gold Prices Plunge Amid Stronger Dollar and Rising Yields

Gold prices fell on Friday and are set for their second consecutive weekly decline due to a stronger US dollar and rising Treasury yields. The spot price of gold dropped 0.6% to $4,154.78 an ounce by 0205 GMT.

The US nonfarm payrolls report is scheduled for release at 1230 GMT on Friday, which will provide indications about the Federal Reserve's future interest-rate decisions. Investors are monitoring expectations for US interest rates alongside developments in the Middle East.

Kyle Rodda, senior financial market analyst at Capital.com, said investors were watching for the nonfarm payrolls figures to determine the outlook for monetary policy. A stronger-than-expected jobs report could raise expectations of tighter policy and put additional pressure on gold.

Market expectations for a rate increase this month have fallen sharply, with traders assigning roughly a 25% probability compared with around 70% earlier in the week. Expectations for a December increase remain considerably higher at about 79%.