Gold dips as yields rise, but eyes best week in five

Friday,   22-Jan-2021   08:51 AM (IST)

Gold eased on Friday as U.S. Treasury yields edged higher, although prices were set to post their best week in five helped by a weaker dollar and further stimulus bets. Spot gold fell 0.1% to $1,867.34 per ounce by 0046 GMT. On Thursday, prices hit their highest since Jan. 8 at $1,874.86. U.S. gold futures GCv1 gained 0.1% to $1,867.80. For the week, spot gold was up 2.2%, it's biggest increase since the week of Dec. 18. U.S. Treasury yields on the longer end of the curve rose along with inflation expectations on Thursday as the market eyed the prospect for additional debt supply under the new U.S. administration. Higher yields increase the opportunity cost of holding non-yielding bullion. The dollar fell to an over one-week low in the previous session, making gold cheaper for holders of other currencies. U.S. weekly jobless claims decreased modestly last week as the pandemic continued to hammer the labor market. The European Central Bank reaffirmed its pledge to keep borrowing costs at record lows on Thursday to help the economy weather the pandemic. Silver XAG= shed 0.2% to $25.89 an ounce, but was set to register its best week in five, up 4.6% so far this week. Platinum was flat at $1,126.78 and was up 4.9% for the week, its best since early December. Palladium gained 0.1% to $2,364.41.