GOLD - SINGAPORE. Gold prices retreated on Friday as firmer U.S. bond yields and a strong dollar weighed on the metal, but bullion was on course for its biggest weekly gain in four.
Spot gold eased 0.7% to $1,709.46 per ounce by 0716 GMT. The metal's prices had slumped to a nine-month low on Monday, but a pullback in Treasury yields helped spark a rebound that has put gold on track for a weekly gain of 0.4%.
U.S. gold futures fell 0.8% to $1,709.10.
"It's basically a function of elevated yields and although yields aren't marching higher, the problem is they're not going lower, and that presents a problem," said Stephen Innes, chief global market strategist at financial services firm Axi.
"Gold's going to hold around $1,700 ... unless we break new ground on higher yields."
Benchmark U.S. Treasury yields climbed, increasing the opportunity cost of holding gold, while the dollar bounced back from a near one-week low.
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Investors are now awaiting the U.S. Federal Reserve meeting next week for direction on its monetary policy.
President Joe Biden on Thursday signed his $1.9 trillion stimulus bill into law and said he was working to speed COVID-19 vaccinations and move the country closer to normality by July 4.
"The implementation of Biden's pandemic relief bills is stoking fears of a massive supply of bonds hitting the market, as well as rising inflation," ANZ analysts said in a note.
"The continued rollout of vaccines is also supporting the labour market, thus diminishing support for safe-haven assets."
Silver eased 1.4% to $25.70 an ounce, but was on track for its best week since mid-February with a 1.7% rise.
Palladium fell 0.9% to $2,324.10. Platinum shed 0.8% to $1,185.85, but was set to post its best week in four with a 4.8% gain.
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