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Spot gold fell 0.2% to $1,817.39 per ounce by 1039 GMT, after
hitting $1,810.86, its lowest since Feb. 7. Bullion has lost
over 3% so far this week.
U.S. gold futures dropped 0.5% to $1,816.40 per ounce.
The Fed being the most hawkish of major central banks and
safe-haven flows into the greenback are weighing on gold, said
Fawad Razaqzada, market analyst at City Index
"Gold has not found any kind of support in times like now, when
you'd expect haven demand to be strong... We've seen lots of
support levels breakdown, which is discouraging for short-term
traders," Razaqzada added.
The dollar index was bound for a sixth consecutive weekly gain,
hovering near a 20-year high, as concerns persisted the Fed's
actions to tame inflationary pressures would crimp global
economic growth. [USD/]
Last week, the Fed increased its benchmark overnight interest
rate by an aggressive half-a-percentage point.
Rising U.S. interest rates and bond yields raise the opportunity
cost of holding bullion. [US/]
"Gold's current trading level below $1,830 looks too cheap, yet
any gains are likely to be capped with a series of rate hikes
diminishing gold's appeal as a non-yield bearing asset," Kinesis
Money analyst Rupert Rowling said in a note.
Gold's recent slide has wiped out most gains made in an initial
rally driven by safe-haven demand amid Russia's invasion of
Ukraine, which had pushed prices to near-record levels in
mid-March.
Spot silver rose 0.6% to $20.78 per ounce, but has fallen about
7% this week, the most since late January.
Platinum rose 0.7% to $950.06 and palladium gained 1.5% to
$1,936.55 though both were on track for weekly losses.
(Reporting by Eileen Soreng in Bengaluru; Editing by Krishna
Chandra Eluri)
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