Gold sets for fourth-week losses on dollar strength, Fed rise bets

Gold prices fell more than 1% on Friday and are set for its fourth consecutive weekly fall, as a stronger dollar race against more aggressive U.S. interest rates on the horizon satisfies bullion hunger.

Spot Gold fell 0.7% to $ 1,808.89 an ounce at 01:54 pm EDT (1754 GMT), reaching a low of 7 1,798.86 since February 4. This week it has dropped about 4%.

US gold futures fell 0.9% to settle at 80 1,808.20.

U.S. Federal Reserve Chairman Jerome Powell said Thursday that the fight to control inflation will “involve some pain” as the effects of higher interest rates are being felt.

“Gold prices are falling and the dollar is very strong, as the Fed is committed to raising interest rates quickly,” said David Meger, director of metals trading at High Ridge Futures.

“In the future, inflation numbers will closely monitor the market.”

The dollar index was set for a sixth weekly gain near the 20-year high. [USD/]

Although inflation is seen as a hedge, no interest is found in the bullion and it is sensitive to US short-term interest rates and bond yields.

“A return to the global stock market is also a negative for safe-haven metals amid low risk aversion in the market to end the working week,” said Jit Wycoff, a senior analyst at Kitco.

Growth stocks on Wall Street’s main index have led to a rebound. [.N] [MKTS/GLOB]

Spot Silver rose 1.6% to 20.98 an ounce, but fell nearly 6% this week, the most since late January.

Platinum fell 0.8% to $ 936.51. Palladium rose 1.5% to 9 1,936.83 after falling more than 8% on Thursday.

“Irresistible concerns about supply disruptions in Russia have dominated the palladium market, and there has been an active purchase as prices have dropped dramatically,” Meger added.