NEW YORK: Gold was on course to gain for the week as concerns over the war in Ukraine and rising prices boosted its appeal as a safe-haven and an inflation hedge, but prices eased on Friday as US Treasury yields firmed.

Spot gold was down 0.4% at $1,950.41 per ounce by 10:17 a.m. EDT (1417 GMT). US gold futures fell 0.6% to $1,951.30.

Helped by expectations of monetary tightening by the US Federal Reserve, yields on the US 10-year Treasury note firmed near multi-year highs, increasing the opportunity cost of holding zero-yield bullion.

“If interest rates do continue to rise at a quick pace that could limit the upside in precious metals,” said Chris Gaffney, president of world markets at TIAA Bank.

“However, overall tone of the market is still supportive of precious metals. There is safe-haven buying and also as an inflation hedge on the retail side. We’re seeing clients coming in wanting to add the diversification of gold to their portfolios,” Gaffney said.

The Fed raised borrowing costs for the first time in three years last week, while traders are pricing in a probability of a 50 basis points rate hike during the Fed policy meeting in May.

Gold, seen as a safe investment during times of political and financial uncertainty, has risen about 1.6% this week as investors try to shield against the impact of the war in Ukraine and higher oil prices that threaten global growth. “Don’t be surprised to see some safe-haven and bargain buying surface as the session progresses and heading into the weekend,” said Jim Wyckoff, senior analyst at Kitco Metals in a note.

Spot silver slipped 0.7% to $25.32 per ounce, but was on track for a weekly rise of about 1.7%. Platinum fell 1.3% to $1,007.42 per ounce, and palladium dipped 1.3% to $2,489.