Gold is trading positively on Asia’s Friday session, posing to end the week with gains.
The metal has weathered significant volatility this week. Volatility was primarily due to rising US Treasury yields and the US dollar’s strengthening in the start of the week.
This will be the bullion’s best week after gaining 1.4% so far, the best performance in the last seven weeks.
In the latest charts, gold futures added 0.33% to $1,716.90 per ounce. Still steady above the psychological support of the $1,700 threshold.
Analysts attribute the recent gain to the recent weakening of the world’s reserve currency. It is ready to end the session with a one-week low.
Consequently, the US Treasury Yields for both 10-year and 30-year contracts edged down in the prior session from a one-year peak incurred in the previous week.
On the other hand, experts in the field noted that the government bonds might linger under traders’ radar for long. They will take the spot previously occupied by the precious metal.
Nonetheless, the overall market sentiment in the coming days will all depend on the health of the overall economy.
In the latest update from the United States, initial jobless claims fell to a four-month low. Initial claims were at 712,000.
Moreover, the country recorded another decline in the weekly measure of coronavirus infections amid swift vaccine rollouts.
Analysts have a mixed opinion on the future performance of the bullion.
Some say that it has already lost its appeal as an effective hedge against inflation and downward movements on assets and equities.
So far in 2020, the metal is down by 9% and is significantly far from achieving its August record-high of trading at more than $2,000 per ounce for the first time.
Updates on Silver, Other Metals
In an update on other precious metals, silver added 0.1% in the early Asian session to $26 per ounce.
The metal is set to end the week with a 3.7% gain, the highest jump since January 2021.
Meanwhile, others such as palladium and platinum are all behaving relatively well, adding 0.2% and 1.2%, respectively.
The latter is also set to end this week with its best week in the last four sessions after hiking 7% for the last five trading days.
Traders will keep the precious metal, including others, under their radar in the coming weeks as swift economic recovery is expected to buoy overall demand.
In an update on the copper price, the industrial metal rose both in New York and London but fell in Shanghai.