Gold Plumbs 9-Mo. Low on Fed Remarks

Gold prices slumped to a near nine-month low on Friday and headed for a third straight weekly decline after U.S. Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields.

Spot gold eased 0.2% to $1,693.79 U.S. per ounce overnight Friday, having earlier dropped to its lowest since June 8 at $1,688.96. It was down 2.3% for the week so far.

U.S. gold futures dropped 0.6% to $1,691.20.

Powell on Thursday repeated his pledge to keep credit loose and said although the rise in yields was "notable", he did not consider it a "disorderly" move.

The U.S. 10-year yield topped 1.5%, while the dollar surged to three-month highs. Higher yields increase the opportunity cost of holding bullion, which pays no interest.

The amount of gold held by exchange traded funds fell by 84.7 tonnes worth $4.6 billion in February, the World Gold Council said.

Silver rose 0.2% to $25.35 U.S. an ounce, but was down 5% for the week so far, its worst since late-November.

Palladium climbed 0.2% to $2,343.55 U.S. Platinum shed 1.2% to $1,113.02 U.S.