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Gold Set For Weekly Loss On Rate Hike Worries

Gold prices eased on Friday and were set for weekly losses of about 2 percent after a string of hawkish comments from Fed, ECB and BoE policymakers. Waning concerns over the Israel-Hamas war also dented demand for bullion.

Spot gold slipped 0.2 percent to $1,954.86 per ounce, while U.S. gold futures were down half a percent at $1,959.55.

The dollar strengthened and Treasury yields spiked following a weak sale of 30-year notes and comments Fed Chair Jerome Powell that the U.S. central bank “will not hesitate” to resume raising rates if it becomes appropriate.

Powell said that inflation has slowed over the past year but the process of getting inflation sustainably down to 2 percent has a long way to go.

Elsewhere, ECB Vice President Luis de Guindos said in a newspaper interview that it is premature to discuss European Central Bank rate cuts.

Bank of England’s Chief Economist Huw Pill said the monetary policy needs to be restrictive in order to bring inflation back to the target.

In the Middle East, Israeli Prime Minister Benjamin Netanyahu said on Thursday his country does not seek to conquer, occupy or govern Gaza after its war against Hamas but a civilian government would need to take shape in Gaza and Israel would make sure an attack like Oct. 7 does not happen again.

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