Gold rises but is on track for weekly loss as Fed rate hike expectations build
GLD•Spot gold rose 0.6% to $4,304.71 per ounce on Friday but was down about 1.7% for the week. Higher Treasury yields and expectations of Fed rate hikes weighed on the metal.
1. Gold prices rise
Spot gold gained 0.6% to $4,304.71 per ounce by 1043 GMT, while US gold futures rose 1% to $4,340. Spot gold was down about 1.7% so far this week. Oil prices fell and the dollar eased about 0.2%.
2. Rate outlook weighs
The Fed raised interest rates by a quarter-point last week, its first hike in three years, and flagged further increases. Traders priced in a 71% chance of an October hike and a 95% chance of an increase in December. Higher rates and bond yields raise the opportunity cost of holding gold, while lower prices drew modestly more buyers in India ahead of the festive season.
