By Asha Sistla
(Reuters) – Gold
Spot gold was down 0.2% at $1,724.03 per ounce by 0420 GMT on Friday, having hit a one-week low of $1,721.46 in the previous session. U.S. gold futures were down 0.1% at $1,722.70 per ounce.
For the week, the metal has lost more than 1% as the U.S. dollar climbed over a four-month high on Thursday.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a one-year low last week.
“The success of the vaccine roll-out appears to be slightly ‘risk on’ and this may help gold if the dollar retreats slightly,” said Nicholas Frappell, global general manager at ABC Bullion.
Treasury yields also jumped on Thursday, denting bullion’s safe-haven appeal. Another bond market sell-off is likely in the next three months following the recent rout in financial markets, according to analysts polled by Reuters.
Higher returns on Treasury bonds generally increase the opportunity cost of holding non-yielding bullion.
Silver edged up 0.1% to $25.04, holding above an over two-month low of $24.39 per ounce hit on Thursday.
Palladium gained 0.5% to $2,621.18 and platinum rose 0.2% to $1,150.01.
(Reporting by Asha Sistla in Bengaluru, Editing by Sherry Jacob-Phillips)