By K. Sathya Narayanan and Shreyansi Singh
Feb 19 (.) – Gold prices rose on Friday, recovering from a more than seven-month low reached in the session, as the US dollar weakened, but rising Treasury yields kept the bull on track. biggest weekly drop since early January.
* Spot gold was up 0.2% at $ 1,778.36 per ounce as of 1822 GMT, after falling to its lowest since July 2 at $ 1,759.29.
* The metal, which is a haven for investors, has lost 2.5% so far this week, its biggest weekly decline since the week of January 8.
* US gold futures were up 0.1% at $ 1,777.
* “The fall in the US dollar has probably pushed gold higher,” said Bart Melek, head of commodity strategy at TD Securities, adding that the move could also be technical in nature.
* The dollar was down 0.3% against its main rivals and was heading for a second consecutive weekly loss.
* “(However) the problem (for gold) is still yields, and we continue to see rates across the curve moving up,” Melek added.
* Benchmark US Treasury yields rose to a nearly a year high.
* Although gold is considered a hedge against inflation, rising inflation expectations have pushed bond yields up, increasing the opportunity cost of holding bullion.
* Platinum, which is used in automotive catalysts, fell 0.6% to $ 1,266.60 an ounce, but was set to post its third consecutive weekly rise, having hit a more than six-year high earlier. of the week.
* Palladium was up 0.9% at $ 2,373.36 an ounce, while silver was up 0.6% at $ 27.18, but was heading for a weekly loss.
(Report by Nakul Iyer in Bengaluru; Edited in Spanish by Javier Leira and Javier López de Lérida)