Gold heads for a weekly loss due to higher bond yields

Gold is heading to record the worst weekly performance in 6 weeks today, Friday, as data showing the continued strength of the US labor market confirms bets on the continued rise in US interest rates and boosts Treasury yields and the dollar.

According to “Reuters”, gold fell in spot transactions by 0.1%, to $ 1932.09 an ounce, by 1046 GMT. US gold futures fell 0.1% to $1967.20 an ounce.

Harshal Barot, senior consultant at Metal Focus, explained that the market is slowly accepting the fact that interest rates may remain high for a longer period, which is reflected in the rise in Treasury yields this week, with gold trending downward.

Gold prices have lost more than 1.4% so far this week and recorded their lowest levels since July 11 in the last session, while US Treasury yields for 10 years rose to their highest levels since November last Thursday after strong US jobs data.