Mounting rate hike bets keep weekly loss in sight for gold
GLD•Spot gold was down about 2.4% for the week as sticky inflation concerns, hawkish Federal Reserve signals and higher U.S. Treasury yields weighed on bullion. Oil prices fell more than 1%, while silver, platinum and palladium were also poised for weekly declines.
1. Gold heads for weekly loss
Spot gold was down 0.1% at $4,274.94 an ounce by 11:45 a.m. ET on Friday and was headed for a weekly loss of about 2.4%. U.S. gold futures rose 0.3% to $4,310.10.
2. Rate outlook weighs on bullion
Higher U.S. Treasury yields raised the opportunity cost of holding gold, while concerns about persistent inflation and hawkish Federal Reserve signals also weighed on prices. 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. Oil prices fell more than 1% as some supply fears eased, while silver, platinum and palladium were also poised for weekly losses.
