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Gold slips as hawkish Fed outlook pressures the non-yielding metal

Gold was last around $4,280 after falling to a one-week low near $4,244, leaving it on track for a weekly decline.

Reported · Written up by our desk · Major Pairs

Gold prices reversed earlier intraday gains on Friday, failing to benefit from a modest pullback in the US dollar and remaining under pressure from growing expectations the Federal Reserve could raise rates again, FXStreet reports.

At the time of writing, XAU/USD was little changed around $4,280 after dropping to a one-week low near $4,244 on Thursday, putting gold on track for a weekly loss.

The Fed delivered a 25-basis-point hike last week, lifting the federal funds rate to 3.75% to 4.00%, and its projections showed 16 of 18 policymakers expect at least one more increase this year, according to FXStreet.

FXStreet also cited hawkish comments from Fed officials, with New York Fed President John Williams saying inflation needs to return to target and that it is reasonable to see another rate hike by year end. The report said the CME FedWatch Tool indicated roughly a 71% probability of a hike at the October meeting.

Latest closeGold $4,292.50 ▼0.6%

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