Gold Prices Fall for Second Week Amid Stronger US Dollar and Higher Yields

Gold prices remained steady on Friday but marked their second consecutive weekly decline due to a stronger US dollar and higher US Treasury yields. The precious metal's value is inversely related to the dollar, making it more expensive for buyers holding other currencies when the dollar gains strength. Spot gold was trading at USD 4,184.45 an ounce by 0419 GMT.

The US dollar's weekly gain and rising Treasury yields have put additional pressure on bullion, causing its price to drop over 2% this week. Investors are now awaiting the September US nonfarm payrolls report, due at 1230 GMT, for clues about the Federal Reserve's interest-rate path. Two Fed policymakers argued for waiting for more economic data before deciding on another rate hike.

Traders are currently pricing in only a 28% chance of a rate hike this month, down from around 70% earlier in the week. Expectations remain stronger for December, with markets pricing in an 82% probability of a rate increase. The Federal Reserve's next policy move will likely be influenced by the employment data.