Gold prices took a hit on Friday, recording their worst week in eight as the US Federal Reserve officials’ hawkish comments boosted bets for at least one more interest rate hike, causing the dollar to surge.
The spot gold price dropped 1.2% to $1,979.63 per ounce by 2:35 p.m. EDT (1835 GMT), while U.S. gold futures fell 1.4% to $1,990.50.
The price of gold has been volatile in recent weeks as investors weigh the possibility of rising interest rates, which typically strengthen the dollar and make non-yielding assets like gold less appealing. The Federal Reserve officials’ hawkish tone this week added fuel to the fire, making it even more challenging for gold to recover from its losses.
The Fed officials’ remarks came after the release of strong economic data, including better-than-expected retail sales and jobless claims figures, which signaled a robust economic recovery. The robust recovery has raised concerns about inflation, leading to fears that the Fed may need to raise interest rates sooner than expected to keep it under control.
The latest development in the gold market has impacted investors, with many feeling uncertain about the future of gold prices. The decline in gold prices has also affected gold miners, whose shares fell sharply on Friday.
The outlook for gold remains uncertain as the Fed’s actions and the dollar’s strength continue to influence the market. Investors are keeping a close eye on economic data and Fed officials’ remarks to determine the trajectory of gold prices.
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