After positive labour market data and comments from US Central Bank officials about tightening monetary policy, which reduced demand for the precious metal, gold prices fell on Friday and were on track to decline for the second consecutive week. This development came as US Treasury bonds began to decline after reaching their highest level in years.
By 01:18 GMT, gold prices had settled instantly at $1627.20 per ounce, a 0.8% weekly decline.
US gold futures fell 0. 4 percent to $ 1630. 10 an ounce.
Patrick Harker, head of the Federal Reserve (US Central Bank) in Philadelphia on Thursday that in light of the current situation of inflation, “the central bank is trying to effectively slow the economy, and will continue to raise interest rates for a while. ”
Although gold is seen as a hedge against inflation, rising interest rates drive up the cost of alternatives that don’t offer any advantages for owning the precious metal.
In quick trades for other precious metals, silver dropped 0.2% to $ 18.63 for an ounce.
Platinum decreased 0.4% to $910.30 for an ounce.
Palladium decreased 1.4% to $2028.43 for an ounce.
The second weekly fall in gold prices is about to be recorded.
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