Gold slides to more than 7-month low as strong yields sap appeal

Gold extended its losing streak to a seventh session on Friday, sliding to its lowest since early July as US Treasury yields continued their march higher, souring the non-interest bearing metal's appeal.

Spot gold fell 0.3% to $1,769.61 per ounce by 1207 GMT, having hit its lowest since July 2 at $1,759.29 earlier in the session.

The safe-haven metal has slipped 2.9% so far this week and is on track to match November 2018's seven-day streak of daily losses, the longest since November 2016.

US gold futures fell 0.5% to $1,766.90.

"As long as yields move higher, the market is simply going to struggle to find a footing," said Saxo Bank analyst Ole Hansen, adding that if the metal fails to hold the $1,765 level, a further downward move could be likely.

Benchmark US Treasury yields hovered near a one-year high hit earlier this week, pushing investors into riskier assets and away from bullion.

Weaker US employment data that undermined recovery hopes also failed to keep gold prices afloat.

But analysts say gold should still benefit from continued loose monetary policy and low real interest rates this year.

Commerzbank analysts said in a note that gold's behaviour resembled that of a tsunami, with prices receding in the first phase before coming back all the more violently.

Autocatalyst metal platinum edged 0.1% down to $1,273.50 an ounce, but was set to post its third straight weekly gain, having hit a more than six-year peak earlier in the week.

"If the ongoing overall reflation focus supporting commodities with a tight and a green theme attached to it continues, then platinum will continue to attract investment demand," Saxo's Hansen said.

Palladium dropped 0.3% to $2,345.36 an ounce, while silver fell 0.2% to $26.96 and was set for its biggest weekly decline since mid-January, slipping 1.5%.