Gold prices slid on Friday as U.S. Treasury yields moved slightly higher, while investors positioned for Federal Reserve Chair Jerome Powell's speech at Jackson Hole, reports Reuters.
Spot gold fell 0.6% to $1,748.69 per ounce by 09:08 a.m. ET (1308 GMT). U.S. gold futures dropped 0.8% to $1,758.10.
"The hawkish expectation on Powell's speech and slightly higher U.S. Treasury yields are probably playing a role in gold's movement," said Craig Erlam, senior market analyst at OANDA.
All eyes are on Powell's speech at the conference in Wyoming at 10:00 am ET (14:00 GMT) for clues on the Fed's interest rate hike pace.
U.S. Treasury yields moved higher, making gold less attractive for investors.
Gold is known as an inflation edge but rising interest rates make the non-yielding asset less appealing.
"Gold traders (are) worried that a hawkish statement would provide additional strength to the dollar and yields, thereby further delaying gold's return to strength by potentially sending it below support at $1,729," Ole Hansen, head of commodity strategy at Saxo Bank said in a note.
Gold pared back some losses, after data showed U.S. consumer spending barely rose in July, but inflation eased considerably, which could give the Fed room to scale back its aggressive interest rate increases.
In physical markets, gold premiums in China jumped this week to their highest since last October, while demand cooled in India.
Spot silver fell 0.2% to $19.25 per ounce, but headed for a weekly gain.
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