April 22 (Reuters) – Gold fell 1% on Friday and was expected to see its biggest weekly decline since mid-March as signs of faster policy tightening from the Federal Reserve pushed yields higher. Treasury and the dollar.
Spot gold was down 0.9% at $1,934.06 an ounce as of 2:26 p.m. EDT (6:26 p.m. GMT), after hitting a two-week low. The metal has lost 2.1% so far this week.
US gold futures fell 0.7% to $1,934.3.
“Refuge metals need a new fundamental spark to heighten investor and trader concern, and that’s just not happening. .
Fed Chairman Jerome Powell said on Thursday that a half-point interest rate hike “will be on the table” when the U.S. central bank meets in May, suggesting it could use aggressive actions to control soaring inflation. Read more
The hawkish tone helped benchmark 10-year US Treasury yields extend gains and also boosted the dollar index
Although bullion is considered a safe-haven asset during times of high inflation, a rise in interest rates to curb rising prices increases the opportunity cost of holding non-performing bullion.
“Despite its recent lackluster price performance, gold nevertheless continues to attract demand from asset managers looking to hedge against rising inflation, falling growth, geopolitical uncertainties, as well as high volatility in equities and especially bonds,” Saxo Bank analyst Ole Hansen said in a statement. Remark.
In the physical gold bullion market, gold traders in India cut discounts this week as demand edged up after the price drop, while activity in China’s top consumer was still dampened by restrictions. by COVID.
Spot silver fell 1.6% to $24.24 an ounce, heading for its biggest weekly decline since late January, down around 5.6%.
Platinum fell 3.9% to $930.04 an ounce and palladium lost 1.7% to $2,381.03.
Reporting by Seher Dareen and Eileen Soreng in Bengaluru; Editing by Elaine Hardcastle, Aditya Soni and Paul Simao
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