2021.02.1909:18:00UTC+00Gold Hits Over Seven-month Low

Gold hit its lowest level in more than seven months on Friday as rising Treasury yields on concerns about the possibility of higher inflation eroded the appeal of non-yielding bullion.

Spot gold was down 0.3 percent at $1,770.72 per ounce, after having touched its lowest since July 2 at $1,759.29 earlier in the session. U.S. gold futures were down 0.4 percent at $1,768.25.

Weak data released overnight showing an unexpected rise in weekly jobless claims and a fall in housing starts for the first time in five months failed to support gold. Benchmark U.S. Treasury yields hovered close to a near one-year high hit earlier in the week, increasing the cost of holding bullion.

The flash reading of the IHS Markit eurozone composite purchasing managers index rose to a two-month high of 48.1 in February from 47.8 in January while in the U.K., the flash composite PMI rose to 49.8 from 41.2 in January.

U.K. retail sales volume decreased 8.2 percent month-on-month in January as tighter nationwide coronavirus restrictions affected demand, the Office for National Statistics said.

Traders will have a chance to take a look at U.S. PMI numbers later today.