Gold fell 1% in the last sessions of the week, Friday, while it recorded the largest weekly decline since mid-March, as indications of a rapid interest rate hike by the US Federal Council led to an increase in the yields of treasury bonds and the dollar.
And the price of gold in spot transactions fell 1% to $ 1929.73 an ounce, following touching its lowest level in two weeks, while prices fell by 2.27% during the week.
And US gold futures fell 0.7% when settling to $1,934.3 an ounce.
US Federal Reserve Chairman Jerome Powell said Thursday that a half-point rate increase “will be on the table” when the central bank meets in May.
The 10-year US Treasury bond yield extended its gains on the back of the Federal Reserve’s hawkish statements in its efforts to control the high inflation rate.
Although gold is considered a safe haven during high inflation rates, raising interest rates to curb price increases increases the opportunity cost of holders of the precious metal that does not generate interest.
As for other precious metals, silver fell in spot transactions 1.6 percent to $ 24.24 an ounce, heading to the largest
Its weekly decline since late January, down regarding 5.6% so far.
Platinum fell 3.9% to $930.04 an ounce, and palladium fell 1.7% to $2381.03.
