Gold Heading For Its First Weekly Decline in 3 Weeks Due to Dollar Rise

Gold prices stabilized today, as high US revenues and concerns about the global economic recovery following the rise in COVID-19 infections across Europe offset the rise of the dollar, but the yellow metal is still on the path of recording its first weekly decline in three weeks.

There was little change on gold in immediate trading, to settle at $1727.10 an ounce. And US gold futures rose 0.1% to $1726.30 an ounce.

Treasury yields are down from their highest level in more than a year, which they reached last week. And according to a Reuters poll, the bond market is likely to see another sell-off in the next three months, following the recent turmoil in financial markets.

Higher yields on Treasury bonds generally increase the opportunity cost of holding the yellow metal that yields no return.

As for other precious metals, silver rose 0.5% to $25.15, to consolidate above its lowest level in more than two months of $24.39 per ounce, which it recorded on Thursday.

Palladium gained 1.2% to $2,639.18, and platinum rose 0.7% to $1,155.27.