LONDON: Gold prices edged up slightly on Friday but a stronger dollar and a rise in US Treasury yields still put the metal on course for its first weekly decline in three.

Spot gold rose 0.2% to $1,729.86 per ounce by 10:07 a.m EDT (1407 GMT) but the metal was down 0.9% so far this week. US gold futures were up 0.1% at $1,726.30.

“Dips are being bought and rallies are being sold into (in the gold market)... there are clearly two definitive sides of a coin and this is the main focal point,” David Meger, director of metals trading at High Ridge Futures said.

A firmer dollar and rising yields, pressuring gold are one side of the coin and rising coronavirus cases and the Federal Reserve’s low-interest rate policy lifting it are another side, Meger added, noting it remains unclear which side will ultimately prevail.

Gold’s modest gains came despite a firmer dollar and an uptick in benchmark yields, that have weighed on the metal’s appeal recently.

A stronger dollar makes holding greenback-denominated bullion more expensive for those holding other currencies, while higher yields raise the non-yielding metal’s opportunity cost.

“A stronger dollar and higher yields continue to spur further liquidation primarily from the ETF community,” said Joseph Stefans, Head of Trading at MKS.

“Gold is trapped in a bit of a range here and I can see it trading sideways over the next week or so.”

The biggest gold-backed exchange traded fund, SPDR Gold Trust has seen outflows of more than 140 tonnes so far this year. Elsewhere, silver fell 0.1% to $25.00 but held above an over two-month low of $24.39 per ounce hit on Thursday. Palladium gained 1.5% to $2,646.88 and platinum rose 1.2% to $1,160.64.