The price of gold rose today, but it is on its way to record the largest weekly decline since mid-November, following the Federal Reserve (the US central bank) indicated the need for more hikes in interest rates to curb inflation.
According to Archyde.com, gold rose in spot transactions by 0.6 percent to $1,787.88 an ounce by 1453 GMT. The precious metal has fallen regarding 0.5 percent so far this week, following hitting a one-week low in the previous session.
US gold futures rose 0.4 percent, recording $1,794.30.
The Fed raised interest rates Wednesday by 50 basis points as expected, but Jerome Powell, the Fed’s chairman, said the bank would continue to raise interest rates next year, despite exacerbating recession fears.
The European Central Bank and the Bank of England indicated a similar strategy to raise interest rates.
Commerzbank expects gold to decline to regarding $1,750 an ounce until the end of the US interest rate hike cycle is clear, and prices are expected to rise to $1,850 by the end of 2023.
Silver rose 0.4 percent to $23.14 an ounce, but has so far recorded a decline of 1.4 percent this week.
Platinum lost 0.4 percent to $1,002.58, and palladium fell 3.6 percent, to $1,726.87, following falling more than 8 percent in the previous session, and is heading for its biggest weekly drop in five months.
