Spot gold fell on Friday, as a higher dollar and rising U.S. Treasury yields weighed on demand for greenback-priced bullion, and put prices on track for their biggest weekly drop since mid-May.
Spot gold dropped 0.4% to $1,849.70 per ounce. U.S. gold futures eked out a small gain, rising 0.15% to $1,852.60.
Gold prices have fallen about 1.1% in what has been a volatile week, after starting it near a one-month peak before hitting a four-week low on Tuesday.
Stocks round the world headed for their worst week since a market meltdown in the beginning of the pandemic in March 2020, as investors feared sharp rate hikes tipping economies into recession.
The U.S. Federal Reserve announced its biggest interest rate hike since 1994 this week, as it scrambles to rein in soaring inflation. Rising rates in the United States increase the opportunity cost of holding non-yielding gold.
