WASHINGTON (dpa-AFX) - Gold prices drifted lower on Friday, sliding for a fourth successive session, as the dollar climbed higher and yields on U.S. Treasury notes rose amid rising prospects of sharper interest rate hikes by the Federal Reserve in the near term.
Dollar has surged higher, buoyed by hawkish comments from Fed Chair Jerome Powell. During a seminar sponsored by the International Monetary Fund (IMF) on Thursday, Powell suggested the possibility of an aggressive tightening of monetary policy to counter high inflation.
The Fed chief said that the central bank is prepared to raise rates 'a little more quickly' to control inflationary pressures and that a half-point rate hike would be on the table when the Fed meets on May 3 and 4.
CME Group's FedWatch Tool currently indicates a 50 basis point rate hike at the May meeting is a near certainty.
The dollar index rose to 101.33, the highest levels since May 2020, and despite easing a bit, remains firm at 101.17, up by about 0.6% from the previous close.
Gold futures for June ended lower by $13.90 or about 0.7% at $1,934.30 an ounce. Gold futures shed about 2.1% in the week.
Silver futures for May ended down by $0.362 at $24.259 an ounce, while Copper futures for May settled at $4.5815 per pound, down $0.1225 from the previous close.
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