PRECIOUS-Gold under pressure from high US bond yields in holiday trading week

(Updates for market close) * Gold down 0.1% this week * US Treasury yields hover near 8-month high hit on Thursday * Dollar set for fourth-straight weekly gain By Sherin Elizabeth Varghese Dec 27 (Reuters) - Gold prices slipped on Friday as elevated U.S. Treasury yields dimmed non-yielding bullion's allure in a holiday-thinned week, with markets focused on President-elect Donald Trump’s return to office and the potential impact of his inflationary policies on the Fed’s 2025 outlook. Spot gold XAU= fell 0.6% to $2,619.33 per ounce, as of 1:41 p.m. ET (1841 GMT). Bullion has lost 0.1% this week. U.S. gold futures GCv1 settled 0.8% lower at $2,631.90. "Treasury yields are a little bit higher here, and gold will remain under pressure through the end of today ... we are here in a thin holiday market," said Bob Haberkorn, senior market strategist at RJO Futures. The dollar index .DXY headed for a fourth straight week of gains, reducing gold's appeal for holders of other currencies, while the benchmark U.S. 10-year yields US10YT=RR were trading near their highest level since May 2, which they hit on Thursday. USD/ US/ So far this year, gold has surged 28%, hitting a record high of $2,790.15 on Oct. 31. The rally was fuelled by the Federal Reserve rate-easing cycle and heightened global tensions. Most analysts remain bullish for 2025, despite the Fed now projecting fewer rate cuts. They believe pockets of geopolitical tensions around the globe will remain elevated, central banks will continue their robust gold-buying spree, and political uncertainty will linger as Trump returns to the White House in January. His proposed tariffs and protectionist trade policies are also expected to spark potential trade wars, adding to gold’s allure as a safe-haven asset. "Next year with central-bank buying, I can see gold topping $3,000 at some point, probably by the summer, if gold continues on the pace that it's been on," Haberkorn said. Gold traditionally shines during periods of economic and geopolitical turmoil and thrives in a lower interest-rate environment. Spot silver XAG= fell 1.3% to $29.41 per ounce, platinum XPT= was down 2.1% at $916.30, palladium XPD= shed 1.2% to $913.71. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold yearly performance- Dec.27 https://tmsnrt.rs/4gxYAYB Spot gold price in USD per oz https://reut.rs/4iVhKJK ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Sherin Elizabeth Varghese in Bengaluru, additional reporting by Swati Verma; Editing by Rod Nickel) (([email protected];))