Gold at a month high as bond yields fall ahead of US employment data

Gold prices settled on Friday at their highest levels a month before the release of long-awaited US employment data, as falling Treasury yields and growing fears of a recession boosted the value of the safe-haven precious metal, keeping it on track for a third consecutive week of gains.

By 0701 GMT, gold settled in spot transactions at $1,790.42 an ounce after hitting its highest level since July 5. Prices rose 1.5 percent this week.

Also, US futures contracts did not witness little changes to settle at $1805.80.

10-year Treasury yields have fallen, reducing the opportunity cost of non-yielding yellow metal holders.

The dollar crept up but struggled to recoup its losses after falling at its fastest pace in two weeks on Thursday.

Market focus is now on the US non-farm payrolls report for July, which may provide more clarity on the Federal Reserve’s plans to combat inflation.

For other precious metals, silver rose 0.3 percent to $ 20.21 an ounce in spot transactions, and palladium rose 2.1 percent to $2107.16. While platinum rose one percent to $ 935.14 an ounce, on its way to achieving gains for the third consecutive week.