Gold set for second weekly loss amid strong dollar, rising yields

Gold prices are headed for their second consecutive weekly decline, weighed down by a strengthening US dollar and climbing Treasury yields. Investors are closely watching upcoming US payroll figures, which are expected to influence the Federal Reserve's monetary policy direction.

Market expectations have shifted, with current forecasts indicating only a 25% probability of a rate increase this month, compared to earlier projections. The combination of dollar strength and higher yields has pressured gold demand, traditionally sensitive to currency movements and interest rate expectations.