Gold fell in price on Friday as U.S. Federal Reserve Chair Janet Yellen's comments to Congress all but assured the market that a rate hike is coming in March.
Spot gold dropped 0.8% to $1,224.65 U.S. per ounce, while gold futures for April delivery fell 6.4% to $1,226.50 U.S., their lowest level since Feb. 15, when gold traded as low as $1,217.50.
Gold is highly sensitive to rising U.S. interest rates because they increase the opportunity cost of holding non-yielding bullion, while boosting the dollar in which it is priced.
Elsewhere among metals, spot silver gained 0.9% to $17.92, after falling 3.5% on Thursday, its biggest one-day drop in 11 weeks. That price was set to end the week 3.4% lower.
Palladium gained 0.03% to $767.47 U.S., having risen 0.9% for the day at $993.75 U.S.
Related Stories
