Gold prices fell for a fourth straight session on Friday to their lowest since April 2020, as expectations of a hefty interest rate hike from the U.S. Federal Reserve next week boosted the dollar and Treasury yields.
Bullion is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding the non-yielding metal.
Spot gold was down 0.4% at last check to $1,661.30 U.S. per ounce. U.S. gold futures fell 0.4% to $1,670.30.
Recent hawkish remarks from Fed policymakers and an unexpected rise in August U.S. consumer prices cemented bets for a 75-basis-point rate hike by the U.S. central bank at its Sept. 20-21 policy meeting.
Gold prices have fallen more than $400, or nearly 20%, since scaling above the key $2,000-per-ounce U.S. level in March. It was also headed for its biggest weekly percentage fall in two months, down 3.4% so far this week.
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