Gold rises but is on track for weekly loss as Fed rate hike expectations build
GLD•Spot gold rose 0.6% to $4,303.19 an ounce on Friday but was down about 1.7% for the week. Rising Treasury yields and expectations of further Fed rate hikes weighed on the metal.
1. Gold prices and rate outlook
Spot gold was up 0.6% at $4,303.19 per ounce by 1210 GMT, while U.S. gold futures rose 1% to $4,339. The Fed raised rates by a quarter-point last week and signaled more hikes; traders priced in a 71% chance of an October increase and a 95% chance of a December increase.
2. Other market influences
Gold also found support as oil prices fell on renewed hopes for a U.S.-Iran deal, while the dollar eased about 0.3%. Negotiators were discussing a deal involving Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran. Silver and platinum rose on Friday, while palladium fell; all three metals were poised for weekly losses.
