Gold Struggles to Break $4,200 as Treasury Yields Rise

Gold prices dropped on Friday, unable to break through the $4,200 milestone despite a weaker US dollar. The yellow metal is down nearly 1% as US Treasury yields edge higher following a less-than-stellar US employment report.

The XAU/USD trades at $4,138 after peaking at $4,227 earlier in the session. This comes despite softer US jobs data, which was well below estimates of 90K, coming in at just 29K.

US Treasury yields remain moderately high with the US 10-year T-note yielding 5.9%, up 4 basis points, making Gold less appealing due to its non-yielding nature. The odds of a rate hike in December have increased to 88% after the Federal Reserve's dovish comments.