|
Spot gold was down 0.44% to $1,942.91 per ounce at 1005 GMT.
U.S. gold futures eased 0.2% to $1,945.20.
"We are dealing with the global economy where interest rate hike
expectations continue to move up, as a result yields are moving
higher and the dollar is trading stronger, all potential strong
challenges to gold at this point," Saxo Bank analyst Ole Hansen
said.
However, "gold is holding within the established range... The
reason being the market is worried that these very strong
expectations for rate hikes in the U.S. may lead to a bigger
than expected economic slowdown."
U.S. Federal Reserve Chairman Jerome Powell said on Thursday a
half-point interest rate increase "will be on the table" when
the central bank meets in May and that it would be appropriate
to "be moving a little more quickly."
Benchmark U.S. 10-year Treasury yields extended gains on the
Fed's hawkish tone on tightening policy in its effort to tame
soaring inflation. Meanwhile the dollar index scaled a fresh
peak since March 2020. [USD/] [US/]
Gold is highly sensitive to rising U.S. interest rates and
higher yields, which increase the opportunity cost of holding
bullion, while boosting the dollar, in which it is priced.
Gold is down about 1.3% so far this week. Prices rose to near
the key mark of $2,000 per ounce on Monday on safe-haven demand
and mounting worries over inflation, only to pull back and hit a
two-week low on Thursday.
Spot silver fell 1.8% to $24.19 per ounce and was headed for its
biggest weekly fall since late January.
Platinum slipped 1.3% to $955.28 per ounce and palladium was
1.4% lower at $2,388.21.
(Reporting by Eileen Soreng in Bengaluru; Editing by Mark
Potter)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
