Gold price slips as yields climb

Gold eased on Friday and headed for a weekly decline as a stronger dollar and higher Treasury yields dented the appeal of zero-yield bullion, while investors also awaited a key US jobs report.

Spot gold was down 0.5 per cent at $1,928.06 per ounce by 1102 GMT. US gold futures GCv1 fell 1 per cent to $1,933.70.

"It is in particular the developments in the fixed income markets, with yields rising again", that are pressuring gold, said Quantitative Commodity Research analyst Peter Fertig.

Yields on the benchmark US 10-year Treasury note US10YT=RR rose back above 2.4 per cent on Friday. Higher yields increase the opportunity cost of holding gold, which yields nothing.

The US dollar firmed for a second straight session, making greenback-priced gold less appealing.

Gold is on course to end the week about 1.5 per cent lower, having slipped to its weakest since late February earlier this week on signs of progress in peace talks between Russia and Ukraine.

Negotiations aimed at ending the five-week war between the countries were set to resume even as Ukraine braced for further attacks in the south and east.

"While geopolitical crises do not last forever, we expect the secondary impacts of the Russia-Ukraine crisis to provide a strong level of support for gold prices this year," analysts at ANZ said in a note.

The broader isolation of Russia will see a structural shift in the energy sector, which will be inflationary, while there is also a higher risk of weaker economic growth, particularly in Europe, it added.

US non-farm payroll data due at 1230 GMT, which could position the Federal Reserve to hike interest rate by 50 basis points next month, was also on the market's radar.

Spot silver shed 0.4 per cent to $24.68 per ounce and was set for a weekly dip.

Platinum rose 0.4 per cent to $987.42, while palladium gained 1.8 per cent to $2,302.50. Both metals were on course for a fourth consecutive weekly loss.