Gold faces fourth weekly loss as burgeoning dollar saps appeal

Gold faces fourth weekly loss as burgeoning dollar saps appeal

Gold prices held ground near a three-month low on Friday as the strongest dollar in two decades continued to sap demand for greenback-priced bullion, setting up what could be the metal's fourth consecutive weekly fall.

In choppy price action, spot gold was flat at $1,823.25 per ounce, as of 0244 GMT, hovering near its lowest level since Feb. 7 hit earlier in the session. U.S. gold futures edged down 0.1% to $1,823.00.

"The fall through support by gold at $1,835.00, and the sell-off in other precious metals overnight, leave gold vulnerable to deeper losses and a potential test of support at $1,780.00 an ounce," OANDA senior analyst Jeffrey Halley said.

The dollar steadied near a fresh 20-year high scaled on Thursday as concerns persisted that the U.S. Federal Reserve's actions to tame inflationary pressures would crimp global economic growth, boosting the currency's safe-haven appeal. Bullion has lost 3.1% so far this week, its most in two months.

Last week, the U.S. central bank hiked its benchmark overnight interest rate by an aggressive half-a-percentage point.

Bullion is sensitive to rising U.S. short-term interest rates and bond yields, which raise the opportunity cost of holding it.

"Nominal yields will also climb, creating double-yield trouble for gold investors as