Gold Declining With Higher Returns But Heading Towards Best Week in 5 Weeks

Gold fell on Friday, January 22nd as US Treasury yields rose, but the yellow metal is on track to record its best weekly performance in five weeks, supported by hopes of a major stimulus in the United States.

Gold fell in immediate transactions 0.6% to 1859.10 dollars an ounce, retreating from the peak of nearly two weeks, which it reached on Thursday. For the week, it rose 1.8%, the biggest weekly gain since the week ending December 18th.

US gold futures fell 0.3% to $ 1860.90.

And record 10-year US Treasury yields are holding above 1% helping the dollar rally.

US jobless claims fell modestly last week, but concerns about the effects of COVID-19 persist.

European Central Bank President Christine Lagarde hinted that the bank may not fully use its emergency procurement program for pandemic-related purchases if financial conditions remain favorable.

As for the other precious metals, silver fell 2% to $ 25.43 an ounce, but it is on track to record its best weekly performance in five weeks, up 2.9%.

Platinum fell 2% to $ 1,104.20, but is heading for gains for the second week in a row, up 2.8%. Palladium fell 0.1% to $ 2,359.52.