Gold prices edged lower on Friday as bond yields edged higher on strong U.S. economic data released overnight. Despite today’s decline, bullion was poised for its first monthly gain of the year.
Spot gold slid 0.2 percent to $1,768.30 per ounce, while U.S. gold futures were down 0.1 percent at $1,766.85.
Higher yields dented the non-yielding metal’s appeal as strong U.S. GDP data and President Joe Biden’s spending plan boosted hopes for a faster economic recovery from the coronavirus pandemic.
Benchmark U.S. 10-year Treasury yields hovered near their highest in more than two weeks after data showed that U.S. economic growth accelerated in the first quarter, reflecting increases in consumer spending, federal government spending, residential fixed investment, and state and local government spending.
The weekly jobless claims dropped to a new pandemic-era low in the week ended April 24 and pending home sales rose in March, signaling that the recovery is gathering pace.