Gold slips as firm dollar, bond yields dent safe-haven appeal

Gold slips as firm dollar, bond yields dent safe-haven appeal

Gold prices fell on Friday and were on track for a weekly loss, as firmer dollar and rising U.S. Treasury yields dampened the metal's safe-haven appeal. Spot gold was down 0.3% at $1,821.89 per ounce by 0401 GMT. For the week, bullion has lost nearly 0.5%. U.S. gold futures eased 0.1% at $1,822.10. "When you get the combination of yields going up and a slightly stronger dollar, it's not a great environment for gold, especially going into the weekend," said Stephen Innes, managing partner at SPI Asset Management. The dollar index held firm near a one-week high, and was set for a weekly gain against its rivals. Benchmark U.S. 10-year Treasury yields were trading above the key 1.6% level and were on track for a strong weekly rise. Higher bond yields raise the opportunity cost of holding non-interest bearing gold. Key economic readings out of the United States this week showed bigger-than-expected rise in consumer prices and weekly jobless claims dropping to a 14-month low, intensifying concerns over rising inflation and possible interest rate hikes. "Right now we haven't had any inclination that the U.S. Federal Reserve is about to move anytime soon, I think gold still remains relatively supported,"