Gold prices slipped on Friday and were on track for a second straight weekly drop, as prospects of higher interest rates and rising bond yields challenged bullion's safe-haven appeal, reports Reuters.
Spot gold fell 0.5% to $1,620.24 per ounce by 1224 GMT. Bullion prices have shed 1.2% so far this week.
U.S. gold futures dropped 0.8% to $1,624.00.
Benchmark 10-year Treasury yields scaled a fresh peak since June 2008, while the dollar index gained, making gold a less favoured bet for investors.
"Gold continues to be driven by the ebb and flow in yields as well as the strength of the U.S. dollar," said Michael Hewson, chief market analyst at CMC Markets UK.
"While yields continue to edge higher, the direction of travel for gold is likely to remain towards the downside and a break of the September lows towards $1,600 (is possible)."
Aggressive monetary policy tightening by the U.S. Federal Reserve, as well as other central banks, has seen gold shed more than 11% so far this year as the metal's lack of yield makes other interest-bearing assets far more attractive.
Gold has also "failed to react to the chaos in Westminster with the markets viewing the end of Liz Truss' disastrous tenure as positive for equities, removing any possible rush to haven assets benefiting gold," said Rupert Rowling, an analyst at Kinesis Money.
The Fed's aggressive stance remains the major driving factor, overriding others including the Ukraine war, Rowling added.
Meanwhile demand for physical gold in India picked up pace this week as some consumers bought into a retreat in domestic prices to a near one-month low ahead of the Dhanteras and Diwali festivals.
Elsewhere, spot silver fell 1.9% to $18.31 per ounce, platinum dropped 2.1% to $894.75, and palladium slipped 3.8% to $1,979.00.
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