Gold prices rose on Friday, to deepen losses for the seventh straight day, and hit a 7-month low while on track for the largest weekly loss in 2021, due to rising US bonds yield.

Gold prices fell 0.9% to the lowest since July 2020 at $1,760.68 an ounce, after opening at $1,776.51, and hit a day high at $1,777.55.

The yellow metal closed lower by 0.1% yesterday, in its sixth straight daily loss and the longest losing streak in 2021, in the longest losing streak since November 2011.

Gold prices lost around 3.5% so far this week, to head for the biggest weekly loss in 2021, as the yield of the 10-year US Treasury bonds rose.

The 10-year US Treasury bonds yield rose 1.0% to 1.311%, extending its gains for the second day near the 12-month high of 1.331%.

This jump in the US bond yields comes after the US inflation expectations rose to the highest level in six years, especially after energy prices rallied, in addition to massive stimulus measures, which indicates that the global economy has entered a more solid phase on the road to recovery from the Covid-19 pandemic after the launch of many vaccination campaigns in most parts of the world.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since June 10 of 1,132.89 metric tonnes.

Silver prices edged higher on Friday, to rebound from the 2-week low that was hit earlier, while the US dollar against its peers.

Silver prices rose 0.5% to $27.18 an ounce, after opening at $27.04, and hit a session-low and the lowest since February 4 at $26.07.

The precious metal fell 1.25% yesterday, and posted the second daily loss in 3 days due to weak safe haven demand.

The dollar index fell more than 0.4% today, to deepen its losses for the second day, which lifts the prices of dollar-denominated metals.

The US dollar fell due to weak demand, after strong data in Europe and Britain raised optimism about the global economic recovery.

Silver prices lost around 1% so far this week, to head for the second weekly loss in 3 weeks, as the yield of the 10-year US Treasury bonds jumped to nearly a 1-year high.

USD/JPY tilted lower in Asian trade off September 2020 highs for the third straight session, following earlier data from Japan and ahead of US data today.

As of 06:58 GMT, USD/JPY fell 0.10% to 105.58, with an intraday low at 105.56. 

From Japan, consumer prices are expected down 0.6% in January, compared to a 1.2% drop in December. 

Core prices excluding food and energy, rose 0.1% in January, compared to a 0.4% drop in December, while Japan's manufacturing PMI rose to 50. from 49.8 in January. 

From the US, Federal Reserve Bank of Richmond President Thomas Barkin is due to participate in a panel discussion at an online event hosted by the Rockingham Chamber of Commerce.

US manufacturing PMI is expected down to 58.4 from 59.2 in January, while US existing home sales are expected down 2.3% to 6.59 million units. 

Sterling rose on Friday for another session against dollar, marking three-year highs and on track for the sixth weekly profit in a row, ahead of major UK data today. 

GBP/USD rose 0.1% to 1.3988, the highest since April 2018, after closing up 0.9% yesterday, the fourth profit in five days. 

The pound is up 1% so far this week on the dollar, on track for the sixth weekly profit in a row, the longest such streak since December 2018. 

Sterling's gains came as chances plummeted for UK negative rates after Bank of England officials almost ruled it out. 

The UK economy has also been recovering faster than expected from the coronavirus pandemic, with Britain preparing to end the lockdown after vaccinating 15 million of its most vulnerable citizens. 

UK data are getting released today on the PMI manufacturing and services indices, expected to show mixed results.