Gold Gaining Ground on the Decline of The Dollar and US Bond Yields

Gold is on the path of achieving its second consecutive weekly gain today, as it is supported by a slight decline in the dollar and US Treasury revenues.

Spot gold rose 0.3% to $1740.99 an ounce. And the yellow metal is up more than 0.6 percent since the beginning of this week. US gold futures gained 0.5% to $ 1741.60.

The US benchmark yields fell for ten years after rising to the highest level in more than a year at 1.754 percent on Thursday, while the dollar gave up the gains it made in early trading.

The Federal Reserve this week reiterated its pledge to keep interest rates near zero and forecast higher economic growth and inflation this year.

Gold is usually used as a hedge against high inflation, but a strong recent rise in US Treasury yields has weighed on the precious metal that does not yield any returns.

As for the other precious metals, palladium fell 2.8$ to $2608.25 an ounce, after rising 7.3% in the previous session.

The metal, used as a catalyst in the auto sector, is on track for a weekly jump of 11%, the largest since early November.

Silver settled at $26.05 an ounce, and platinum fell 0.9 percent to $ 1196.69.