Gold Pointed Downward on Hawkish Remarks

Gold prices dropped on Friday and were on track for a second consecutive week of declines, weighed by a stronger U.S. dollar and Treasury yields after hawkish remarks from Federal Reserve Chair Jerome Powell.

Figures released overnight Friday showed spot gold fell 0.3% to $1,952.78 per ounce after hitting its lowest since Oct. 18 on Thursday. U.S. gold futures fell 0.6% to $1,957.50.

Gold has slid 2% so far this week, on track for the biggest weekly decline in more than a month.

Denting market expectations of a peak in U.S. interest rates, Fed officials, including Powell, said on Thursday they still aren’t sure that rates are high enough to finish the battle with inflation.

Traders pushed out bets on the Fed’s first rate cut to June of next year, from May earlier. Higher rates raise the opportunity cost of holding gold, which yields no interest.

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