Gold prices fell to their lowest in over five months on Friday, hit by a broad sell-off in commodities as well as surging bond yields on speculation a splurge of U.S. infrastructure spending could stoke inflation.
Spot gold fell 2.8 percent to $1,222.20 an ounce by 1:48 p.m. EDT after touching a session low of $1,229.04, the weakest since June 3. It has shed over 5 percent so far this week.
U.S. gold futures fell 3.4 percent to $1,223.20 per ounce after falling to $1,228.50, the weakest since June 3.
"There's a broad based commodity sell-off. Copper and nickel are getting hit and it's spilled over into precious," a European trader said.
Gold was already slightly weaker before base metals reversed and went into negative territory after a sizzling rally, while oil extended losses.
"We're seeing a complete reassessment of various asset classes following the Trump win earlier this week. The combination of rising real yields and the stronger dollar is really hurting sentiment in gold," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.