London (Reuters) – Stabilized The price of gold Today, Friday, ahead of US jobs data coming in today, the yellow metal is set to record its biggest weekly decline since late November, as traders prepare to raise US Federal Reserve interest rates quickly, under pressure from rising bond yields.
Gold rose 0.1 percent in immediate trade, reducing its weekly decline to 2 percent after two sessions at 03.41 GMT an ounce (one ounce). US gold futures rose 0.2 percent to $ 1,792.60.
“It is clear that the Fed’s attempt to control rising inflation raises yields,” said Kyle Rhoda, a researcher at IG Markets, adding that precious metals basically lose some appetite.
Benchmark yields on 10-year U.S. Treasury bonds are at an all-time high after March 2021, raising the potential cost of holding gold.
Gold is considered a hedge against inflation, but it is vulnerable to rising US interest rates, which increases the likelihood cost of holding a non-yielding yellow metal.
Among other precious metals, silver spot trades showed little change at $ 22.14 an ounce. Platinum was up 0.2 percent at $ 966.50 an ounce and Palladium was down 0.6 percent at $ 1,872.02.