Gold prices took a break from continuing higher gains after touching the latest two -month highs in the previous session.
In the Asian session, gold traded hovering at $ 1,838 an ounce, down slightly from the new $ 1,847 price it had previously reached. Gold futures traded at $ 1,839 an ounce.
Earlier, gold rose higher following a decline in 10 -year U.S. bond yields to 1.81%, reducing the opportunity cost of holding the precious metal.
Even so, bond yields are still at a two -year high due to expectations of faster policy tightening from the Federal Reserve (Fed). The FOMC policy meeting next week is now the main focus of the market.
Gold has risen around 1.2% this week and is on track for a second weekly rise, giving a good start for the yellow metal this year.
The increase was driven by concerns over rising global inflation, thus providing support for gold as a hedge to inflation as well as some geopolitical tensions in the Middle East.
