Prices for gold were set Friday for a second weekly decline as U.S. Treasury yields held near multi-year highs following strong labour market data and hawkish comments from Federal Reserve officials, dampening the appeal for zero-yield bullion.
Spot gold was flat at $1,627.20 U.S. per ounce early in the day, and had lost 0.8% so far for the week.
U.S. gold futures were down 0.4% at $1,630.10.
The benchmark 10-year Treasury yields held near a fresh 14-year peak hit on Thursday while the U.S. dollar index ticked 0.1% higher.
Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the bullion, which yields nothing.
Spot silver eased 0.2% to $18.63 U.S. per ounce, platinum fell 0.4% to $910.30 U.S. and palladium dropped 1.4% to $2,028.43 U.S.
