Gold futures rose on Friday morning for the second day in a row, setting the bar for the steepest weekly rise in about a month. The precious metal was benefiting from falling benchmark bond yields, weak US dollar DXY, -0.16%, and a pullback in bitcoin BTCUSD, -4.02%, one of the competing assets. with safe haven gold.
June GCM21 gold, + 0.83% GC00, + 0.83% was trading at $ 13.20, or 0.7%, higher at $ 1,779.70 an ounce on Comex, following a 1.8% gain on Thursday. For the week, gold was on track for a 1.3% weekly rise, marking its biggest weekly advance since the period ending March 19, FactSet data shows. The 10-year Treasury bond BX: TMUBMUSD10Y was yielding 1.57%, below its recent range of 1.60% to 1.75%. A drop in government bond yields can boost appetite for non-coupon-generating precious metals. Meanwhile, the dollar was down 0.2% to 91.542, as measured by the ICE US Dollar Index DXY, down -0.16%, a measure of the dollar against half a dozen currencies. The dollar is down 0.7% so far this week and 1.8% in April so far. A weaker dollar can make dollar-pegged assets more attractive to foreign buyers. Market participants have said that rising US tensions with China and Russia have helped boost the metal’s attractive haven. Tensions between the United States and China over Taiwan have risen, with the Biden government expelled some Russian diplomats on Thursday and announced sanctions against dozens of individuals and businesses, partly in retaliation for Russia’s interference in last year’s presidential election .