Gold dips on higher yields, faces third straight weekly fall

Gold prices edged lower on Friday, and were on track for a third straight weekly decline, as rising U.S. Treasury yields weighed on demand for zero-yield bullion. FUNDAMENTALS * Spot gold was down 0.1% at $1,805.39 per ounce, as of 0103 GMT, after hitting a more than six-week low of $1,801.50 in the previous session. U.S. gold futures were flat at $1,806.40. * Gold prices, coming off their worst quarter since early 2021 due to hawkish central banks and a soaring U.S. dollar, have lost about 1.2% this week. * A stronger dollar makes gold more expensive for buyers holding other currencies. * Benchmark U.S. 10-year Treasury yields rose after falling to their lowest since June 7 on Thursday. * New U.S. data for May showed little immediate relief from the record pace of inflation pushing the Federal Reserve toward another oversized interest rate increase next month, but it did add to a developing sense that the worst may be over. * Higher interest rates raise the opportunity cost of holding bullion, which yields no interest. * SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.22% to 1,050.31 tonnes on Thursday from 1,052.63 tonnes on Wednesday. * Spot silver eased 0.1% to $20.23 per ounce, and has dropped about 4.1% this week, its most since mid-May. * Platinum rose 0.2% to $895.50, but faces a fourth consecutive weekly fall of about 1.4%. * Palladium dropped 0.3% to $1,920.53, but has gained about 2.8% this week. DATA/EVENTS (GMT, June) 0145 China Caixin Mfg PMI Final 0750 France S&P Global Mfg PMI 0755 Germany S&P Global/BME Mfg PMI 0800 EU S&P Global Mfg Final PMI 0830 UK S&P GLBL/CIPS Mfg PMI 0900 EU HICP Flash YY 0900 EU HICP-X F&E Flash YY 1345 US S&P Global Mfg PMI Final 1400 US ISM Manufacturing PMI