Prices for gold inched higher after hitting a one-week low on Friday, but headed for a second straight weekly and monthly decline as brighter economic outlook and inflation fears propped up U.S. Treasury yields.
Spot gold was up 0.2% to $1,773.06 U.S. per ounce early Friday morning, having earlier fallen to its lowest since Feb. 19 at $1,764.90. Prices were down 0.6% for the week and 4% for the month so far.
U.S. gold futures fell 0.2% to $1,771.80 on Friday.
Prices had dropped 1.9% on Thursday as benchmark U.S. Treasury yields hit their highest since the pandemic began, lifting the dollar.
Higher inflation boosts gold but also lifts Treasury yields, which in turn increase the opportunity cost of holding non-yielding bullion.
Silver eased 0.2% to $27.34 U.S. an ounce, but was poised for a third straight monthly rise, while palladium climbed 0.8% to $2,420.68 U.S. and was set to register its best month in a year with a more than 8% gain.
Platinum rose 0.6% to $1,223.79 U.S. and was set to mark its best month since February 2008 with an over 14% gain.
