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Gold stabilizes after two-day slide as dollar, yields pause

Gold was last around $4,305, after slipping to a $4,244 one-week low on Thursday, but Fed rate-hike expectations still point to a weekly loss.

Reported · Written up by our desk · Precious Metals

Gold steadied on Friday after a two-day pullback, as the US dollar and Treasury yields took a breather following a strong week, FXStreet said. At the time of writing, XAU/USD was trading around $4,305 after falling to a one-week low of $4,244 on Thursday.

Despite the near-term stabilization, FXStreet said the broader fundamental picture remains bearish for gold. It cited expectations that the Federal Reserve could raise rates again, a view that continues to weigh on the precious metal.

FXStreet noted the Fed delivered a 25-basis-point hike last week, lifting the federal funds rate to 3.75% to 4.00%. It also pointed to the Fed’s updated projections, showing 16 of 18 policymakers expect at least one more increase this year.

The outlet further said bets for another hike gained traction during the week on strong US Purchasing Managers’ Index data and hawkish comments from Fed officials. It referenced New York Fed President John Williams saying inflation needs to return to target in a timely manner, and that another rate hike by year end is reasonable.

Latest closeGold $4,292.50 ▼0.6%

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