Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022.
Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. Reuters / ALEXANDER MANZYUK

Gold was on course to gain for the week as concerns over the war in Ukraine and rising prices boosted its appeal as a safe-haven and an inflation hedge, but prices eased on Friday as U.S. Treasury yields firmed.

Spot gold XAU= was down 0.4% at $1,950.41 per ounce by 10:17 a.m. EDT (1417 GMT).

U.S. gold futures GCv1 fell 0.6% to $1,951.30.

Helped by expectations of monetary tightening by the U.S. Federal Reserve, yields on the U.S. 10-year Treasury note US10YT=RR firmed near multi-year highs, increasing the opportunity cost of holding zero-yield bullion. US/

"If interest rates do continue to rise at a quick pace that could limit the upside in precious metals," said Chris Gaffney, president of world markets at TIAA Bank. .N MKTS/GLOB

"However, overall tone of the market is still supportive of precious metals. There is safe-haven buying and also as an inflation hedge on the retail side. We're seeing clients coming in wanting to add the diversification of gold to their portfolios," Gaffney said. GOL/ETF

The Fed raised borrowing costs for the first time in three years last week, while traders are pricing in a probability of a 50 basis points rate hike during the Fed policy meeting in May.

Gold, seen as a safe investment during times of political and financial uncertainty, has risen about 1.6% this week as investors try to shield against the impact of the war in Ukraine and higher oil prices that threaten global growth.

"Don't be surprised to see some safe-haven and bargain buying surface as the session progresses and heading into the weekend," said Jim Wyckoff, senior analyst at Kitco Metals in a note.

Spot silver XAG= slipped 0.7% to $25.32 per ounce, but was on track for a weekly rise of about 1.7%.

Platinum XPT= fell 1.3% to $1,007.42 per ounce, and palladium XPD= dipped 1.3% to $2,489.