By David Brough
Gold prices ended the week down almost 2 percent, pressured by a stronger dollar and rising U.S. Treasury yields.
The rising Treasury yields made non-yielding bullion relatively less attractive to investors.
On February 5, the dollar lost ground after a slower than expected rise in US employment, and gold nudged up 1 percent to $1,814.62 per ounce.
The dollar and Treasury yields look set to have a big influence on gold prices in the near term, analysts said.
A stronger dollar would make dollar-denominated gold more expensive in terms of other currencies.
While gold may face some near-term downward pressure due to the strengthening greenback, expectations that a huge $1.9 trillion U.S. stimulus package to aid Americans whose livelihoods have been devastated by the pandemic, could add inflationary pressures. This can potentially underpin bullion, which is seen as a hedge against inflation.
Separately, the latest Swiss gold export data signalled a recovery in Indian demand, bullion dealer Sharps Pixley said in a market commentary.
This could augur well for a pickup in Indian gold jewellery exports. India is a leading supplier to the global jewellery market.
Indian fabricators are huge importers of Swiss refined gold.
Disclaimer: Any opinions expressed in this column are solely those of the author and should not be considered as investment advice.