Mounting rate hike bets keep weekly loss in sight for gold
GLD•Spot gold was down about 2.4% for the week as hawkish Federal Reserve signals and higher U.S. Treasury yields weighed on bullion. Traders priced in a 64% chance of an October rate hike and a 93% chance of a December hike.
1. Gold heads for weekly loss
Spot gold was down 0.1% at $4,274.18 an ounce on Friday and was headed for a weekly loss of about 2.4%. U.S. gold futures rose 0.3% to $4,310.80.
2. Rate expectations weigh
Higher Treasury yields increased the opportunity cost of holding bullion, while concerns about persistent inflation and hawkish Federal Reserve signals also weighed on gold. The Fed raised rates by a quarter-point last week, its first increase in three years, and signalled more hikes ahead; traders priced in a 64% chance of an October hike and a 93% chance of one in December.
3. Other metals also decline
Gold had fallen about 19% from its February 27 session high. Silver, platinum and palladium were also poised for weekly losses, while oil prices dropped more than 1% as some supply fears eased.
