Gold falls but still set for weekly gain

Gold fell on Friday in Asia but was still poised for its third consecutive weekly gain. Weakening U.S. bond yields and a greenback set for a third weekly decline helped mitigate losses for the safe-haven asset.

Gold futures slumped 0.28% to $1,797.55 by 11:44 PM ET (3:44 AM GMT) but added 0.3% so far within the week. The dollar, typically moving inversely to gold, moved up on Friday but was still on track for its third weekly decline.

Benchmark 10-year U.S. Treasury yields were likewise headed to their biggest decline since early September 2021. Investors are now fathoming what the sharp declines in the U.S. yield curve suggest about expectations for economic growth and the rate at which the U.S. Federal Reserve could tighten monetary policy amid still-rising inflation.

On Thursday, U.S. data showed a smaller-than-expected 2% quarter on quarter GDP growth, while the GDP price index went up 5.7% quarter on quarter in the third quarter of 2021.

Investors are now waiting for the Fed’s policy decision, due on November 3, while the European Central Bank handed its policy decision on Thursday.

In other precious metals, silver edged down 0.3%, set for its worst week since mid-September 2021. Platinum shed 0.1%, while palladium gained 0.2%.