Safe haven metal gold looks all set to end the third consecutive week in the green amid a decline in US Treasury yields even as the US dollar strengthens and makes the commodity more expensive to purchase. At the time of writing, GOLD is trading at a little above $1,804.

So far this week, gold has gained almost 0.8%, posting a weak rise due to the recent gains in the US dollar. As we know, the greenback shares a negative correlation with the precious metal as a stronger dollar makes it more expensive for holders of other currencies to buy bullion.

However, the yellow metal has been helped by the downslide in US Treasury yields, ever since the Fed’s latest policy meeting announced a shift in outlook from dovish to hawkish. Weaker bond yields decrease the opportunity cost of holding non-yielding bullion, making it appealing to investors and contribute to gold’s recent gains.

The safe haven appeal of gold also remains supported amid worries of the latest resurgence of cases across several parts of the world, driven by the highly contagious delta variant. The latest wave of the pandemic hampers hopes for economic recovery and clouds the outlook, even though COVID-19 vaccine rollouts are picking up pace worldwide.

In addition, an unexpected increase in the number of weekly jobless claims across the US also provided support to gold prices, helping them edge higher in the previous session. The number of Americans filing fresh unemployment claims ticked higher to 373k over the past week, coming in higher than the previous reading of 364k and economists’ expectations for a decline to 350k instead.