On Friday, gold prices are sliding lower as the US dollar and Treasury yields strengthen and exert pressure on the precious metal, but are still on course to post a gain for the second consecutive week. At the time of writing, GOLD is trading at a little above $1,906.

While rising hopes for more fiscal stimulus measures were supposed to support gold and keep it on the bullish track, the sudden surge in 10-year US Treasury yields has had a bigger impact on the yellow metal. Rising bond yields have weakened the safe haven metal while also supporting the greenback which enjoys a negative correlation with the yellow metal.

Gold prices, however, enjoy support from the recent victory for Democrats in the Georgia elections which helped the party secure a majority in the US Senate. This majority will make it easier for President-elect Joe Biden to pass key legislation like higher stimulus checks and more taxes, which could strengthen the precious metal in the near term.

Later today, gold could experience considerable movement on the release of the non-farm payrolls data from the US. The report for December could shed light on the health of the US economy and how much more stimulus it would need.