Gold traded little changed in the Asian session amid the strengthening of higher 10 -year US bond yields and the return of US dollar trading found support to rise.
At the time of writing, spot gold is trading up at around $ 1,785 per ounce while gold futures are trading at around $ 1,786 per ounce.
10 -year U.S. treasury yields rose to a five -month high supported by unemployment benefit claims data signaling the labor market is back strong.
This reinforces confidence for stronger US economic growth and the withdrawal of monetary stimulus by the Federal Reserve (Fed).
The number of U.S. jobless claims fell to a 19 -month low, with only 290,000 claims made last week, better than market expectations of 298,000.
This not only supports the rise in bond yields but also trades the US dollar to rebound against its main rivals.
Even so, gold trading as a whole is seen to remain strong by maintaining the gains it earned this week and being on track for a second consecutive weekly rise.
