Gold faces fourth weekly loss as burgeoning dollar saps appeal
- Date: 13-May-2022
- Source: Zawya
- Sector:Financial Markets
- Country:Middle East
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