Gold rose slightly in trading on Friday as U.S. Treasury yields fell, but the dollar’s strength put prices on track for their biggest weekly loss in eight weeks after undermining demand for the precious metal.
By 0323 GMT, spot gold was up 0.2 percent at $1,744.07 an ounce. And U.S. gold futures rose 0.1 percent to $1,740.50.
Yields on ten-year U.S. Treasuries fell after gains in the previous two sessions that supported gold, which did not generate fixed interest.
The dollar settled at its highest level since 2002, keeping dollar-denominated gold near a nine-month low hit on Wednesday.
As for other precious metals, silver was up 0.2 percent at $19.23 an ounce and platinum was up 0.2 percent at $874.52 an ounce in spot trades, but both headed for weekly losses. Palladium rose 0.5 percent to $2000.68 an ounce, up about 2 percent on the week.
Copper and other metals rose after signs that China was planning a $224 billion stimulus package.
China’s finance ministry is examining a plan to allow local governments to sell up to 1.5 trillion yuan of private bonds in the second half of this year, Bloomberg Agency reported on Thursday, citing sources.
This would represent an unprecedented acceleration in infrastructure financing to support the country’s struggling economy. Copper prices rose 5.6 percent on the London Metal Exchange.