Markets: Gold falls due to rising bond yields and heads to close the week

Gold prices fell this Friday, as a rebound in US Treasuries and the stability of the dollar caused a liquidation after the strong retreat from record highs, so the bullion is heading for its first weekly decline since beginning of July.

He oro Cash was down 0.2% to $ 1,948.27 an ounce at 1032 GMT. Meanwhile, gold futures in the United States fell 0.6% to US $ 1,957.60 an ounce.

After hitting a record high of $ 2,072.50 last Friday and rising for nine weeks in a row, the bullion has lost more than 4% so far this week.

Gold is pressured by rising yields of Treasury bond 10-year to its highest level since June 24, analysts said. Higher returns increase the opportunity cost of holding non-performing assets, such as bullion.

Gold also largely ignored economic data from the top consumer, China, which did not meet market expectations, and data showing that the euro zone economy suffered its deepest contraction on record in the second quarter.

Among other metals, silver was down 3.4% to $ 26.62 an ounce and was on track to break a nine-week winning streak with a 6% weekly decline. Platinum was down 1% at $ 947.66 an ounce, and palladium was down 0.5% at $ 2,156.28 an ounce.

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