NEW YORK / Content Syndication Services / — Gold fell sharply on Friday, dropping to its lowest level since May 4 as a stronger U.S. dollar and rising Treasury yields weighed on demand for bullion. Spot gold declined 2.3% to $4,541.91 an ounce by 1540 GMT, after falling earlier in the session to its weakest level in nearly two weeks. The metal was down about 3.7% for the week, extending a broader retreat across precious metals.
U.S. gold futures for June delivery also fell, dropping 3.2% to $4,535 an ounce. The move tracked a wider selloff in metals as investors adjusted to firmer dollar conditions and higher yields in U.S. government debt markets. A stronger dollar makes gold more expensive for buyers using other currencies, while higher yields raise the relative appeal of income-bearing assets compared with bullion, which does not pay interest.
The dollar advanced during the session, with the dollar index trading higher near 99.17, while the benchmark 10-year U.S. Treasury yield rose to about 4.54%. The yield move followed renewed inflation concerns in financial markets, including the impact of higher oil prices on expectations for borrowing costs. Those conditions kept attention on the Federal Reserve’s interest-rate path, a key factor for gold because monetary policy affects the opportunity cost of holding the metal.
Dollar strength pressures bullion
Friday’s decline followed a softer session on Thursday, when gold ended lower as oil prices and the dollar strengthened. Spot gold had slipped 0.4% on Thursday to $4,669.48 an ounce, while June U.S. gold futures settled 0.4% lower at $4,685.30. The back-to-back losses left bullion heading for a weekly decline, reversing part of its earlier gains in a year marked by elevated commodity prices and heavy focus on inflation data.
Other precious metals also weakened on Friday. Spot silver fell 8.6% to $76.27 an ounce, platinum dropped 3.9% to $1,976.54, and palladium declined 1.7% to $1,412.11. The scale of the silver move highlighted the breadth of the metals retreat, with selling extending beyond gold into both industrial and investment-linked precious metals. The decline came as higher yields reduced the appeal of non-yielding assets across commodity markets.
Precious metals extend losses
Gold’s latest drop placed prices sbelow levels seen earlier in the week, when bullion had already been pressured by a firmer dollar and stronger energy prices. On May 4, spot gold fell about 2% to $4,523.23 an ounce as inflation concerns, dollar strength and Middle East risks influenced trading conditions. The latest move brought prices back near that range, marking the lowest level since that early May decline.
Despite the weekly loss, gold remained at historically elevated levels after a strong advance earlier in the year. Market attention stayed focused on the relationship between the U.S. dollar, Treasury yields, inflation data and oil prices, all of which shaped trading across precious metals. Friday’s figures showed bullion under pressure from the same combination of stronger dollar conditions and rising yields that has narrowed demand for assets without income returns.