Gold heads for fourth weekly dip as dollar, Fed hike bets dim appeal

Gold heads for fourth weekly dip as dollar, Fed hike bets dim appeal



By Eileen Soreng Gold fell on Friday and was headed for a fourth consecutive weekly decline pressured by overall strength in the dollar on pros..







Reuters









May 13, 2022 / 04:44 PM IST





Representative Image



Gold fell on Friday and was headed for a fourth consecutive weekly decline, pressured by overall strength in the dollar on prospects of aggressive interest rate hikes by the U.S. Federal Reserve.

Spot gold fell 0.2% to $1,817.39 per ounce by 1039 GMT, after hitting $1,810.86, its lowest since Feb 7th. Bullion has lost over 3% so far this week.

U.S. gold futures dropped 0.5% to $1,816.40 per ounce.

"The Fed being the most hawkish of major central banks and safe-haven flows into the greenback are weighing on gold," said Fawad Razaqzada, market analyst at City Index.

"Gold has not found any kind of support in times like now when you’d expect haven demand to be strong… We’ve seen lots of support levels breakdown, which is discouraging for short-term traders,” Razaqzada added.

The dollar index was bound for a sixth consecutive weekly gain, hovering near a 20-year high, as concerns persisted the Fed’s actions to tame inflationary pressures would crimp