Gold prices slipped on Friday but hovered near 10-week high after gaining 3% in the previous session, its biggest one-day gain in more than two years.
Gold prices gained on Wednesday as the U.S. dollar weakened after treasury yield fell in the previous session.
A stronger U.S. dollar and rising U.S. government bond yields could represent a significant headwind for gold this week despite Friday’s gains, as the precious metal’s inverse relationship to the greenback continues to offset safe haven demand.
Gold hit two-week highs before settling a touch lower, but still above the $1,200 perch Thursday as profit-takers cashed in on the safe-haven demand for bullion that's been trending lately.
Gold prices inched up on Wednesday after gaining over 1% in the previous session on worries over Italian finances. EU officials expressed concerns about Italy’s financial budget plan and fears of a widening budget deficit drove up safe-haven demand.
Gold prices inched up on Friday but were still near six-week lows it hit in the previous session after the conclusion of the Federal Reserve’s meeting earlier in the week