Gold ends losing week near £3,235 an ounce as two-decade-high US yields weigh

Gold closed the week at around £3,235 a troy ounce, according to LivePriceOfGold.com, or roughly £104 a gram before dealer costs. In dollar terms the metal finished Friday near $4,285, a small gain on the day but, according to USAGOLD, still more than 2 per cent lower over the week.

The main headwind came from the United States. USAGOLD reports that the 10-year Treasury yield reached about 5.10 per cent on Thursday, its highest level since 2007, while the dollar climbed to a two-month high after US business activity grew at its fastest pace in more than five years. Markets now put the odds of a Federal Reserve rate rise in October at close to two in three. Because gold pays no interest, higher yields tend to make it less appealing next to bonds and cash.

There were some signs of support. Silver outpaced gold on Friday, narrowing the gold to silver ratio to about 66.8 from above 67, which USAGOLD read as physical buyers stepping in on weakness. Next week, traders will watch the US August PCE inflation figures for fresh clues on rates.

For UK buyers, spot is only part of the cost. Investment gold coins and bars are free of VAT, but dealer premiums and delivery charges vary, so comparing the all-in price is the best way to find value. This is market information, not financial advice.