Gold prices decreased on Friday, looking to endure their first monthly loss this year, as hints from leading central banks that the era of easy money may be coming to a close pushed bond yields higher, hurting the non-interest bearing metal. While gold is still up 8% in the first half, the shiny yellow metal has stalled in the second quarter after a strong start to the year, and is little changed from where it ended March.
Experts pegged the price of spot gold down 0.2% at $1,243.40 U.S. an ounce, while U.S. gold futures for August delivery were 0.2% lower at $1,243.10 U.S. an ounce.
Spot prices have settled nearly 2% so far in June, and are down 0.4% in the second quarter. Comments this week from the euro-zone, the Bank of England and the Bank of Canada indicated that quantitative easing programs in place since the financial crisis may be being wound up, leading to a gradual normalization of interest rates.
That comes in the wake of the U.S. Federal Reserve's decision to hike interest rates south of our border at its June meeting, and its indication that it will press ahead with plans to shrink its $4.5 trillion in bond holdings.
Among other precious metals, silver was up 0.1% at $16.61 U.S. an ounce. Silver has seen the biggest fall among major precious metals this quarter, down nearly 9%, while palladium is the best performer, up 6.1%.
Palladium was down 0.5% at $843.47 U.S. an ounce on Friday, while platinum was down 0.04% at $919.66 U.S.
