Investing.com – Demand for gold fell on Friday, amid a strengthening U.S. dollar.
Comex for June delivery were down 0.08% to $1,288.40 a troy ounce as of 10:13 AM ET (14:13 GMT).
The price of bouillon was driven lower by the rise in the greenback and increase in bond yields.
The , which measures the greenback’s strength against a basket of six major currencies, was at a five-month high of 93.69.
Gold is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises.
The precious metal was held back by rising bond yields this week. The yield on the benchmark Treasury note was at 3.089 after reaching an overnight seven-year high of 3.126.
The rise in bond yields, along with positive economic data and rising inflation, has boosted expectations that the Federal Reserve will increase interest rates and tighten monetary policy.
The Fed raised rates in March and is expected to raise rates twice more, with some investors expecting a third hike. Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Elsewhere on the Comex, were down 0.49% to $16.40 a troy ounce. Among other precious metals, fell 0.96% to $883.50 while slipped 0.52% to $972.40 an ounce. futures decreased 0.36% to $3.078 a pound.
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Source: Investing.com
