Gold prices fell to their lowest in nearly three months on Friday and headed for their worst week since end-November, as recent strength in U.S. Treasury yields dented the non-yielding metal’s appeal.
Spot gold fell 0.4% to $1,769.26 U.S. per ounce early Friday having touched its lowest since Nov. 30 at $1,765.35 earlier in the session. Prices have declined 3% so far this week.
U.S. gold futures slipped 0.5% to $1,766.40.
Benchmark U.S. Treasury yields edged higher, having hit a near one-year peak earlier in the week. Higher yields increase the opportunity cost of holding bullion, which pays no interest.
The dollar was also set to mark a weekly gain, making gold expensive for holders of other currencies.
Elsewhere, prices for silver eased 0.6% to $26.86 U.S. an ounce, after falling over 1.8% so far this week, its worst since mid-January.
Platinum slipped 0.7% to $1,266.09 U.S. and was on course to mark its third straight weekly gain, while palladium shed 0.3% to $2,345.02 U.S.
