Futures for gold on Friday headed for a fourth straight decline, putting bullion on track to notch its second losing streak of that length this month, as a sharp rise in government bond yields has undercut demand for the precious metal.
The yellow metal is also on track for its second straight weekly drop and its second straight monthly loss, with February on pace to mark bullions steepest such slide since November, FactSet data show.
On Friday, the metal was extending its slide as a perkier dollar combined to provide a further drag, with gold for April delivery traded on Comex off 12.50, or 0.7, to 1,762.90 an ounce, following the metals 1.3 skid on Thursday.
Gold is in trouble once more and the nearterm outlook isnt looking great for the yellow metal, wrote Craig Erlam, senior market analyst at Oanda, in a daily research note.
A surge in yields, representing higher borrowing costs and a richer riskfree rate of return in fixedincome investments, has forced investors to reassess the composition of their portfolios, putting pressure on assets that dont offer a yield versus government debt.
A firmer dollar on Friday, with the buck up 0.5 as gauged by the ICE U.S. Dollar Index, was also weighing on bullion.
Rising yields and now a jump in the dollar are piling the pressure on gold and, barring a reversal in bond markets, its tough to envisage its fortunes improving, wrote Erlam.
On Thursday, the 10year benchmark Treasury note, touched a yield near 1.54 intraday,…