Gold Slips Amid Rising Treasury Yields and Hawkish Fed Signals

Gold prices edged higher on Friday but were headed for a weekly loss due to concerns about sticky inflation and hawkish signals from Federal Reserve policymakers.

The US benchmark 10-year bond yield hit a fresh 19-year high, increasing the opportunity cost of holding non-yielding bullion. Since the onset of the US-Israeli war on Iran, rising energy prices have kept inflation concerns alive, forcing central banks to adopt tighter policy frameworks.

Han Tan, chief market analyst at Bybit, noted that 'the unrelenting surge in Treasury yields has set gold on course for its 4th weekly decline over the past five weeks.'