Gold set for biggest weekly fall in 3 years as Fed rate-cut bets ease
Gold prices on Friday were on track for their biggest weekly decline in over three years as expectations of less aggressive interest rate cuts by the U.S. Federal Reserve lifted the dollar, denting allure for bullion among investors.
Spot gold lost 0.1% to $2,565.49 per ounce as of 01:44 p.m. ET (1842 GMT). Prices have fallen more than 4% so far this week, touching their lowest since Sept. 12 on Thursday. U.S. gold futures settled 0.1% lower at $2,570.10.
The dollar was set for its biggest weekly gain in more than a month, making gold more expensive for other currency holders.
U.S. Treasury yields, meanwhile, extended gains after data showed retail sales in the world's largest economy rose more than expected last month.
Economists believe President-elect Donald Trump's tariff plans would stoke inflation, potentially slowing the Fed's rate easing cycle.
Speaking on Thursday, Fed chair Jerome Powell said the U.S. central bank did not need to rush to lower interest rates.
Markets now see a 62% chance of a 25-basis-point rate cut in December, down from 83% a day before, according to the CME Fedwatch tool.
Source: Reuters
