Gold faces weekly loss on surging bond yields as US payrolls loom

GOLD prices looked set to post their worst week in six on Friday as investors braced for a closely watched US jobs report after a string of solid economic data this week drove Treasury yields to nine-month highs.

Spot gold was up 0.1 per cent at US$1,936.15 per ounce by 0138 GMT, while US gold futures rose 0.2 per cent to US$1,971.70 per ounce.

Gold prices have declined more than 1 per cent so far this week, having slipped to their lowest level since July 11 in the last session.

US long-term Treasury yields climbed to their highest since November on Thursday after employment and other economic data pointed to easing inflation.

Rising bond yields dampen the appeal of gold, which pays no interest.

Spot silver gained 0.2 per cent to US$23.60 per ounce and platinum rose 0.3 per cent to US$917.29. Both were set for third consecutive weekly losses.

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Palladium was up 0.2 per cent at US$1,260.65. REUTERS