The resurgence in yields on US government bonds, especially 10-year tenors, put pressure on gold prices.

Commodity Observer Ariston Tjendra said the 10-year tenor yield formed a new high this year, around 1.75% yesterday.

"This is the highest level in 14 months. This morning the yield is still at 1.71%. The expectation of an increase in inflation of above 2% in the US has triggered an increase in yield and pushed the strengthening of the US dollar which put pressure on gold prices," he said in Jakarta Friday (19/3).

He explained, the decline in gold prices has the opportunity to continue if yields are still moving up.

"The price has the opportunity to fall to the range of US$1,700 per troy ounce if the important support at around US$1720 per troy ounce is successfully broken down," he said.