Metals Stocks: Gold prices see muted action Friday as strong dollar, rising yields limit moves

United States

Gold futures on Friday were trading near unchanged as global stocks, the U.S. dollar and bond yields were all rising, putting some pressure on bullion. A reading of U.S. inflation did little to change gold’s early trading moves.

Gold for April delivery  GC00, -0.05% GCJ21, -0.05% shed $ 2, or 0.1%, at $ 1,722.90 an ounce on Comex, following a 0.5% slide on Thursday. The precious metal has been trading on either side of unchanged.

“Gold prices are slightly lower in early U.S. trading Friday and seeing a bit of selling pressure amid generally positive trader and investor attitudes in the marketplace,” wrote Jim Wyckoff, senior analyst at

The 10-year Treasury note TMUBMUSD10Y, 1.670% was yielding 1.67%, up after trading near an intraweek low of around 1.59% on Thursday, but down from 1.729% put in last Friday. Rising yields can detract from appetite for non-yielding precious metals.

A gauge of the U.S. dollar was up 0.3% on the day and week, as measured by the ICE U.S. Dollar Index DXY, +0.29%, a measure of the buck against a half dozen currencies. A stronger buck can make commodities priced in the currency comparatively more expensive to overseas buyers.

Gains in stocks, with the Dow Jones Industrial Average DJIA, +0.62% and the S&P 500 SPX, +0.52% set to rise on Friday, were weighing on gold appetite.

May silver SIK21, +0.27% SI00, +0.27%, meanwhile, was trading 10 cents, or 0.4%, higher at around $ 25.15 an ounce, after a decline of 0.7% in the previous session.

A reading on U.S. personal income and spending showed that income declined 7.1% in February, compared with an expected drop of 7%, according to consensus estimates of economists surveyed by Dow Jones. Consumer spending fell 1%, compared with an expected drop of 0.8% and the Federal Reserve’s preferred inflation gauge, personal-consumption expenditures, or PCE, rose 0.2% in February, with core inflation up 0.1%, excluding volatile energy and food, matching estimates.