Despite the slight increase, gold is set to post 2% losses within a week

Gold stabilized on Friday, in view of US employment data in arrival today, but the yellow metal is heading towards its largest weekly decline since late November, under pressure from rising bond yields as traders brace for a US Federal Reserve hike in interest rates .

And gold rose in immediate trade by 0.1% to $ 1790.90 an ounce, after falling for two sessions, thereby reducing its weekly decline to around 2%. US gold futures rose 0.2% to $ 1,792.60.

“It is clear that the prospect of the (Fed) trying to control rising inflation is boosting yields,” said IG Markets analyst Kyle Rhoda, adding that the precious metal was losing some appetite on it. base.

Yields on benchmark 10-year US Treasuries rose to their highest level since March 2021, increasing the opportunity cost of holding gold.

Gold is considered a hedge against inflation, but is vulnerable to rising US interest rates, which increase the opportunity cost of holding the non-productive yellow metal.

Among other precious metals, silver did not experience minimal changes in spot transactions, settling at $ 22.14 per ounce. Platinum was up 0.2% to $ 966.50 an ounce, while Palladium fell 0.6% to $ 1,872.02 an ounce.

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