Gold is falling as bond yields increase, heading for a weekly loss

Gold fell on Friday and is heading for a weekly decline, as the rise in Treasury yields affected the attractiveness of the non-yielding metal, and increased pressure on it due to the rise of the dollar.

And gold fell in spot transactions 0.4 percent to $ 1929.90 an ounce by 0825 GMT.

US gold futures fell 0.9 percent to $1,936.

The benchmark 10-year US Treasury yield rose today again from the 2.4 percent level, after falling to its lowest level in a week during the previous session.

Higher returns increase the opportunity cost of holding gold.

The dollar rose for the second consecutive session, which undermined the attractiveness of gold, priced in it.

Gold is heading for a weekly loss of about 1.4 percent, after it fell earlier in the week, amid signs of progress in talks between Russia and Ukraine.

Silver fell in spot transactions 0.5% to record $24.65 an ounce, and it is on its way to a weekly decline.

Platinum rose 0.1 percent to $984.56, while palladium advanced 0.6 percent to $2,274.34. And the two metals are heading for their fourth consecutive weekly loss.