Market News

BY  Sybilla Gross, Preeti Soni and Jack Ryan

(Bloomberg) -- Gold extended a weekly decline as Treasury yields rose and investors took profits from a blistering rally.

Bullion traded near $2,880 an ounce, about 2.3% below its record on Monday. A pullback this week would end an eight-week climb, the longest since 2020. US 10-year Treasury yields advanced more than 1% on Thursday, denting the relative appeal of gold, which does not bear interest.

Gold’s recent run has been broadly supported by haven demand amid concern and confusion over US President Donald Trump’s plans for sweeping tariffs. On Wednesday, he said his administration would impose 25% levies on the European Union. For Canada and Mexico, the tariffs deadline remains March 4 and Trump hasn’t decided whether to grant another extension, a White House official said.

Trump’s comments on the timing, size and targets of his tariffs have frequently confounded global markets, while his geopolitical moves have also underscored bullion’s role as a store of value in uncertain times. Additionally, new research suggests the president’s planned levies on imports from China may hit the American economy more than official US trade data indicates.

Looking ahead, investors will be analyzing the Federal Reserve’s preferred inflation gauge on Friday for more clues about monetary policy. Treasury investors anticipate the central bank will shift its focus from inflation to growth.

Spot gold declined 1% to $2,887.76 an ounce at 10:01 a.m. in London. The Bloomberg Dollar Spot Index edged up 0.1%. Silver, platinum and palladium all traded in a narrow band.