Gold-yellow metal slumped lower on Friday amid increases in U.S. 10-year treasury yields have prompted investors to stay away from safe-haven.
Ahead of the opening of the European session, the price of gold fell around the price level of $ 1,906 per ounce, while gold futures traded low at $ 1,907 per ounce (2.20pm Malaysian time).
Democrats' dominance in the US Senate has raised expectations of greater stimulus measures and rising inflation expectations should drive gold as a hedge of inflation.
However, the surge in bond yields to its highest level since March 2020 also led to the resurgence of the US dollar from its lows to almost 3 years and strong performance in the US stock market.
In addition, higher inflation and bond yields also boosted Federal Reserve (Fed) policymakers' expectations that the central bank's new monetary policy approach is well underway.
The issuance of the US NFP employment report tonight is expected to also affect gold trading of precious metals.
