Gold recovers from the bottom of 7 months after the fall of the dollar

Gold prices rebounded from more than seven-month lows as the dollar fell, but rising U.S. bond yields kept the metal on track for its worst weekly performance since early January.

Gold climbed 0.2 percent to $1,783.35 an ounce, after touching its lowest level since July 2 to $1,759.29 earlier in the session.

The metal, considered a safe haven, is down about 2.5 percent since the beginning of the week, the biggest weekly loss since the week ended January 8.

U.S. gold futures increased 0.1 percent to $1,777.

“The decline in the U.S. dollar probably led to the rise of gold,” said Bart Melick, commodities strategy director at TD Securities, adding that the move may also be technical in nature.

The dollar fell 0.3 percent against major currencies and looks set to record its second straight weekly decline.

Benchmark U.S. Treasury yields increased to a nearly a year’s high earlier in the day.

For other precious metals, platinum, which uses a catalyst in the automotive industry, fell 0.6 percent to $1,266.60, but is heading for its third straight weekly gain after climbing to a top of more than six years earlier in the week.

Palladium rose 0.9 percent to $2,373.36 an ounce.

Silver rose 0.6 percent to $27.18 an ounce, but was on track to record a weekly decline.