By Bharat Gautam

(Reuters] – On Friday gold fell and was heading for a weekly drop as lower Treasury yields weighed on zero-yield bullion. Additionally, a weaker dollar put further pressure.

The price of an ounce was $1,929.90 by 0825 GMT. It had fallen 0.4%. U.S. dropped 0.9% at $1,936

Peter Fertig, Quantitative Commodity Research Analyst said that gold is being driven by “in particular developments in fixed income markets with yields rising back,”

The benchmark U.S. 10-year Treasury Note yield rose to 2.4% after falling to an all-time low of 1.4% the week before. A higher yield means that gold has a lower opportunity cost than it does to be held, even though the yields are much better. [US/]

For the second consecutive session, the U.S. Dollar firmed. This makes greenback-priced golden less attractive. [USD/]

After falling earlier this week in response to progress made by Russia and Ukraine, gold will finish the week around 1.4% below its previous levels.

In the midst of Ukraine’s bracing for new attacks, the negotiations to end the five-week war were resumed.

Later Friday, a key U.S. employment report could be used by the Federal Reserve to decide whether or not to increase its interest rates up to 50 basis points next month. [USD/]

Stephen Innes (managing partner, SPI Asset Management), stated in a note that “A negative surprise regarding employment and earnings shouldn’t dent market rates hike pricing for 202022,” with the Fed switching to inflation-fighting modes.

“By contrast, an increase in jobs data will add weight to the notion that the U.S. has greater underlying momentum than what the Fed had previously believed.”

Spot silver fell 0.5% to $24.65 an ounce, and the market is expecting a weekly drop.

While palladium rose 0.6%, to $2,274.34, platinum climbed 0.1% to $984.56. Both metals suffered a fourth weekly loss.