The dollar indicator breaks records
As the dollar increased ahead of crucial US employment statistics that may offer additional hints about the breadth of the upcoming Fed rate hike, gold declined for a third week in a row.
The price of the precious metal is currently close to a six-week low as the dollar index reached a record high on Thursday and Treasury yields increased, making the interest-free precious metal less appealing.
Further tightening of the Fed’s monetary policy
Rafael Bostic, president of the Atlanta Federal Reserve Bank, stated on Thursday that the fight against inflation is far from over because the current rate is well above the 2% target set by the US central bank.
Rising Treasury yields have revived dollar king trading, according to senior market analyst Edward Moya of Oanda Corp. “Gold is becoming a punching bag,” he added.
In early Friday trade in London, spot gold increased 0.1% to $1,699.57 an ounce and is down 2.2% for the week.
While silver, palladium, and platinum prices increased, the Bloomberg dollar spot index decreased by 0.1%.