Gold trading continued to drag into the red ocean causing it to plunge to a 7-month low of $ 1,761 per ounce during the Asian session. This fall resulted in gold experiencing its worst week since the end of November 2020.
At the opening of the European session, gold traded weakly at around $ 1,771 per ounce, while gold futures declined at $ 1,769 per ounce (3.00pm Malaysian time).
10-year US bond yields remained high despite recording a slight decline ahead of the weekend trading which resulted in the US dollar also reducing profits.
The decline in gold continued despite an unexpected increase in US unemployment claims data last week.
Gold-plated metals are losing their appeal as safe-haven assets due to increased market confidence in stronger US and global economic growth driven by vaccine launches and larger government spending.
This confidence has prompted long-term U.S. treasury yields to rise higher and hit a nearly one-year high earlier this week.
Other precious metals also suffered losses on Friday. Silver fell 0.6%, after a low of 1.8%, the worst level since mid-January 2021. While platinum declined 0.7%, as prices headed for the third consecutive weekly rise, and palladium fell 0.3%.
