Gold prices sink 1.5% on Friday as U.S. dollar edges up

Frankfort (Jan 22)  Futures for gold on Friday traded 1.5% lower, but were still on pace for a modest advance for the week, as the U.S. dollar steadied to wrap up the week.

Commodity analysts say that a recent rise in inflation-adjusted yields, or real yields, and a firmer U.S. dollar this month have combined to weigh on gold prices.

“Gold prices are also slipping again, as real US yields break a three day losing streak which has weighed on the dollar and supported the yellow metal,” wrote Craig Erlam, senior market analyst at Oanda Europe, in a daily research note.

February gold  GC00, -1.23% GCG21, -1.23% was off $29.10, or 1.5%, to trade at $1,836.90 an ounce, after a decline of less than 0.1% on Thursday.

Silver for March delivery  SI00, -2.16% SIH21, -2.16% was shedding 71 cents, or 2.8%, to trade at $25.13 an ounce, following a 0.3% gain in the prior session.

Gold is on track for a weekly gain of 0.5%, while silver is headed for a 1.2% rise, FactSet data show, based on the most-active contracts.

The dollar, meanwhile, was trading 0.2% higher on Friday but set for a weekly decline of about 0.5% to 90.29, as gauged by the ICE Dollar Index DXY, 0.11%.

MarketWatch