Losing the shine - Gold suffers weekly loss as Fed rate hike expectations build
Gold prices faced weekly losses driven by rising US Treasury yields and growing expectations of Federal Reserve rate hikes. Despite this, safe-haven demand and geopolitical talks involving the Strait of Hormuz kept broader market interest alive.
Why it matters
Precious metals and monetary policy expectations directly impact global investor sentiment, inflation hedging, and commodity market stability.
SOUTH-EAST ASIA (Reuters): Gold was on track for a weekly loss on Friday, as rising US Treasury yields and growing expectations of Federal Reserve rate hikes weighed on the metal.
Spot gold inched up 0.3% to $4,291.06 per ounce by 0844 GMT, but was down about 2% so far this week. US gold futures rose 0.7% to $4,326.60.
US Treasury yields hovered at a near-two-decade high, raising the opportunity cost of holding gold.
"Ongoing inflationary pressures are driving those rate hike fears higher, which probably will stay until there's a resolution to the issues around the Strait of Hormuz and the wider Middle East region," said Nitesh Shah, commodity strategist at WisdomTree.
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