Gold prices fell 1% on Friday and were in a phase heading into the biggest weekly decline since mid -March following indications of a rapid interest rate hike from the US Federal Reserve and also prompted a strengthening US dollar increase in Treasury yields.
Gold price on spot trading fell 0.5% to $ 1,942.39 an ounce after hitting a 2 -week low. Gold prices have been down 1.7% for the week so far. The U.S. gold futures market fell 0.2% to $ 1,944.40 an ounce.
According to Kitco senior analyst Jim Wycoff, safe have metals need a fundamental spark to offset the concerns of investors and traders. The perceived downturn has invited market players to make sales.
Fed Chairman Jerome Powell said on Thursday that it was almost certain that interest rates would be raised by 50 points at a central bank meeting in May.
U.S. 10 -year Treasury Yield adding to profits driven by the Fed’s hawkish tone. The Fed has chosen to raise interest rates to curb rising inflation. Meanwhile, the US dollar Index, which measures the US dollar against six major currencies, traded close to its highest level since March at 101.180.
On the other hand, the market is still worried about the uncertainty that exists in Ukraine. According to Wycoff, investors are still worried and this is reflected in the shaky stock market. The Russo-Ukrainian war has driven up prices in the metal market.
"Gold may trade in the range of $ 1,900 to $ 1,950 an ounce in the medium term," said Rupert Rowling, market analyst at Kinesis Money
