Gold prices fell for the third week in a row, despite its rise in the last trading week, Friday, affected by the rise in the dollar and bond yields, after new statements tending to tighten monetary policy from US Federal Reserve officials.
Philip Stripel, chief market strategist at Blue Line Futures in Chicago, said that the market is affected by the dollar’s rise, as well as statements by US central officials that tend to tighten monetary policy.
Officials from the US Federal Reserve said this week that the Fed should have raised interest rates more than it did earlier this month.
price movements
Gold prices recorded a weekly decline of 1.24 percent, despite the rise in spot gold by 0.33 percent in Friday trading, the last session of the week, to reach the level of $ 1842.36 an ounce, after it fell earlier to its lowest level since late December.
The dollar index jumped to a six-week high, making the precious metal less attractive to buyers holding other currencies, and bond yields rose.
Gold is a hedge against inflation, but higher interest rates increase the opportunity cost of holding non-yielding bullion.
On the other hand, silver recorded a weekly decline of 1.24 percent, to reach $21.73 an ounce.
