The price of gold on Friday's trading (5/3) has the potential to fall in the range of US$1,650-1,730 per troy ounce as the US government bond yields continue to rise, especially the 10-year tenor.

"Currently, the bond yield is in the range of 1.56 % and touched the range of 1.58 %. Whereas the previous day, it was in the range of 1.49 %," said Commodity Observer Ariston Tjendra in Jakarta, Friday (5/3).

He explained that the increase in yield was inseparable from the Governor of the Fed's statement at the US economic discussion forum organized by the Wall Street Journal that inflation would temporarily increase at the start of the economic recovery.

Market players are anticipating the prospect of rising inflation with an increase in yield on long-term government bonds.

Tonight the US employment data for February, non-Farm payrolls will catch the eye of market participants.

"If the data released is better than expectations indicating a recovery in the US economy, the price of gold could be under pressure due to the strengthening of the US dollar," said Ariston.