WASHINGTON (dpa-AFX) - Gold prices fell sharply on Friday as a robust dollar and elevated Treasury yields dented the appeal of non-interest-yielding bullion.
Spot gold fell 0.9 percent to $1,656.41 per ounce, while U.S. gold futures were down over 1 percent at $1,663.75.
The dollar index rose to a new two-decade high against its rivals and benchmark 10-year U.S. Treasury yields hit an 11-year peak after several central banks delivered large interest-rate hikes this week to tackle persistent inflationary pressures.
The Federal Reserve has signaled a longer tightening cycle to get inflation back under control.
The Fed's new projections showed its policy rate rising to 4.4 percent by year-end, before peaking at 4.6 percent in 2023.
The Bank of Canada is expected to raise its policy rate by 50 bps in October to 3.75 percent.
In the U.K., money markets are pricing in a peak in rates at around 4.9 percent by June 2023.
ECB rate rises may continue into early 2023 even as the bloc braces for recession.
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