Gold heads for weekly loss as stronger dollar, Fed rate outlook weigh
GLD•Spot gold was down more than 2% for the week as a stronger dollar and expectations of elevated U.S. interest rates weighed on prices. On Friday, spot gold fell 0.1% to $4,274.90 an ounce.
1. Gold prices retreat
Spot gold fell 0.1% to $4,274.90 per ounce by 0632 GMT on Friday, down more than 2% so far this week. U.S. gold futures edged 0.3% higher to $4,310.30.
2. Rate outlook weighs
A stronger dollar and rising U.S. Treasury yields pressured gold, as expectations grew that the Federal Reserve would keep rates elevated to contain inflation. Two Fed policymakers said additional rate hikes may be needed after last week's quarter-point increase, and markets priced in a nearly 71% probability of a U.S. rate hike in October.
3. Other metals fall
Silver slipped 0.2% to $63.76 per ounce, platinum rose 0.1% to $1,750.80 and palladium fell 1.5%; all three were poised for weekly losses. Gold demand in India picked up modestly as lower prices drew buyers ahead of the festive season.
