2021.03.1910:28:00UTC+00Gold Rises As Yields Dip

Gold inched higher on Friday and was on track for its second straight weekly gain as the greenback moved lower amid a retreat in U.S. Treasury yields.

Spot gold edged up 0.2 percent to $1,735.50 per ounce, while U.S. gold futures were up 0.2 percent at $1,735.95.

U.S. bond yields edged off the 14-month highs reached the day before in reaction to the Fed's decision to allow inflation to accelerate more than normal.

Bond markets have experienced sharp moves earlier this week as the U.S. Federal Reserve upgraded expectations for GDP growth and inflation and cut estimates for the unemployment rate.

The 10-year Treasury yield pulled back after economic data released overnight proved to be a mixed bag.

While U.S. jobless claims unexpectedly jumped to a one-month high due to the impact of Winter Storm Uri, a measure of regional manufacturing activity spiked to a nearly 50-year high, separate reports showed.

German long-dated government bond yields slipped in tandem with U.S. yields.