On Friday morning ,Gold prices slid as the dollar slipped along with the 10-year U.S. treasury yields that retreated to below the 3% mark.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 91.32, down 0.08%.
The 10-year U.S. Treasury yield slipped back to below the 3% level. The yield was driven up to a new four-year high of 3.033% this week since early 2014, shoring up the dollar.
As the dollar rose to a three-month high at above the 91 mark, the preciosu metals were under pressure. Gold was particularly trading at a one-month low at the 1,310 range.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.
However, this did not apply to the morning market on Friday, as gold prices slipped together with the dollar.
Deemed as a safe-haven asset, gold attracts demand in times of elevated geopolitical risks, and vice versa. As inter-Korean relations seemed to improve, it eased geopolitical concerns and investors turned to risk assets instead.