Gold heads for weekly decline as dollar firms, Fed rate outlook weighs
GLD•Spot gold was down 0.2% at $4,270.40 an ounce on Friday and had fallen more than 2% for the week, pressured by a stronger dollar and expectations that the Fed will keep rates elevated for longer.
1. Gold prices ease
Spot gold fell 0.2% to $4,270.40 per ounce as of 0035 GMT and was down more than 2% for the week. U.S. gold futures edged 0.2% higher to $4,304.80.
2. Rate outlook weighs
The dollar was headed for a weekly gain, making gold priced in dollars more expensive for holders of other currencies. Two Fed policymakers said the central bank would likely need to raise rates again to curb inflation, a week after it raised its benchmark rate by a quarter percentage point. Higher rates can curb gold demand by increasing the appeal of yield-bearing assets.
3. Other precious metals
Spot silver slipped 0.5% to $63.58, platinum was steady at $1,749.61 and palladium fell 1.3% to $1,257.70.
