Gold On Track For Third Weekly Loss On Rate Hike Concerns

Gold prices fell sharply on Friday and were set for a third straight weekly decline as markets priced in further rate hikes by central banks, including the Federal Reserve, to combat inflation. The move underscores the pressure higher interest rates and yields are putting on non-yielding commodities like gold. The article points to a risk-off, bearish backdrop for bullion rather than a broader market shock.

Analysis

Gold prices fell sharply on Friday and were set for a third straight weekly decline as markets priced in further rate hikes by central banks, including the Federal Reserve, to combat inflation. The move underscores the pressure higher interest rates and yields are putting on non-yielding commodities like gold. The article points to a risk-off, bearish backdrop for bullion rather than a broader market shock.