Despite moving higher earlier in the day, gold prices slipped as the session progressed on Friday and settled lower, as the Federal Reserve’s hawkish policy outlook continued to weigh on the commodity.
The dollar index rose to 92.41 and despite paring some gains subsequently, was still fairly well placed in positive territory at 92.24, up nearly 0.4% from Thursday’s close.
Gold futures for August ended down by $5.80 or about 0.3% at $1,769.00 an ounce, the lowest settlement since April 30. Gold futures shed nearly 6% in the week, recording the biggest weekly loss since the second week of March 2020.
Gold futures rose to $1,797.90 an ounce in the Asian session today.
Silver futures for July ended up by $0.113 at $25.969 an ounce, while Copper futures for July settled at $4.1570 per pound, down $0.0210 from the previous close.
Concerns about the outlook for monetary policy continued to weigh the yellow metal. The Fed’s forecast for two interest rates hikes in 2023 has led to speculation that the central bank will soon start tapering its asset purchases.
Fed Chair Jerome Powell said after the policy meeting on Wednesday that the central bank would provide “advance notice” before making any changes to its asset purchases.
St. Louis Federal Reserve President James Bullard said today that he expects the central bank to raise interest rate in 2022.
The material has been provided by InstaForex Company – www.instaforex.com