Gold wilts to its lowest in a week as Fed-fired dollar firms
Bullion is set for its biggest weekly fall since August after the Federal Reserve indicated it will continue to raise interest rates, lowering demand for the metal
Bengaluru — Gold prices fell to their lowest in a week on Friday, and were set for their biggest weekly fall since August, on a firmer dollar as the US Federal Reserve indicated it will continue to raise interest rates, lowering demand for bullion. Spot gold fell 0.4% to $1,218.23/oz at 3.57am GMT, having touched its lowest level since November 1 at $1,218.08. Gold was down 1.2% for the week, its biggest weekly decline since the week of August 17. US gold futures fell 0.3 percent to $1,221.70/oz. “Gold has come under pressure because of a stronger dollar. Also the FOMC [Federal open market committee] meeting showed no change in the interest rates. Market sentiment from here could be bearish for gold,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. The dollar gained against its major peers on Friday as the Fed on Thursday kept interest rates steady but reaffirmed its monetary tightening stance. Higher interest rates raise the opportunity costs of holding ...
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