Mounting rate hike bets keep weekly loss in sight for gold
GLD•Spot gold rose 0.1% to $4,282.98 an ounce on Friday but was down about 2.1% for the week, pressured by inflation concerns, hawkish Federal Reserve signals and higher Treasury yields.
1. Gold heads for weekly loss
Spot gold rose 0.1% to $4,282.98 an ounce by 2:05 p.m. ET on Friday, but was down about 2.1% for the week. U.S. gold futures settled 0.5% higher at $4,321.20.
2. Rates weigh on bullion
The 10-year U.S. Treasury yield hit a fresh 19-year high, increasing the opportunity cost of holding non-yielding gold. The Federal Reserve raised rates by a quarter-point the previous week, its first increase in three years, and signaled more hikes ahead; traders priced in a 66% chance of an October hike and a 93% chance of one in December.
3. Other metals decline
Oil prices fell about 3% as some supply concerns eased. Silver rose 0.5% to $64.26 an ounce, platinum gained 1.7% to $1,780.28, and palladium slipped 0.3% to $1,270.30; all three were poised for weekly losses.
