Gold futures were down in Asian hours on Friday amid increasing US Treasury yields and a continuous strengthening greenback.
The dollar-denominated metal is sensitive to moves in the US dollar. A stronger greenback makes gold less attractive for holders of foreign currency, damping demand for safe-havens.
On the Comex division of the New York Mercantile Exchange, gold futures were up 0.02 percent at $1.289.70 a troy ounce as of 6:40 GMT.
The yield of US 10-Year Treasuries moved to 3.122%, adding 0.43%, in early trading hours - the highest level since 2011. Higher yields boost the dollar’s position.
The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.04 percent at 93.34 by the time of this writing.
Still, the world’s most popular currency remained well above the 93 level. Overnight, the dollar index reached a fresh 2018 high at 93.46.
Expectations for Federal Reserve monetary policy chances are currently a key issue for investors. The Fed has anticipated three interest rate hikes for this year.
Fed funds tracked by CME Group’s FedWatch tool show that market participants are currently weighing in a 95 percent probability of a rate hike in the June monetary policy meeting.
“Our judgment at the Dallas Fed is that we are either at or already past full employment,” said Dallas Fed President Robert Kaplan at a chamber of commerce event in Richardson, Texas.