Gold prices steady, set for second week of declines

Gold prices steady, set for second week of declines

On Friday, gold prices were steady, heading for their second straight week of decline, with worries over major central banks possibly implementing big interest rate hikes to target runaway inflation weighing on appetite for bullion.

Spot gold was flat at $1,823. After hitting a one-week low of $1,820, the ounce was 20 per ounce by the time of 0113 GMT. It was 99 earlier in the session. US gold futures fell 0.3% to $1,823. The price of gold has dropped by 0.9% this week.

The US Federal Reserve's commitment to reining in 40 year-high inflation is unconditional, even as it acknowledged that sharply higher interest rates may push up unemployment.

On Thursday, the US Treasury yield fell to two week lows, while copper was at 16 month lows as investors worried about a possible global economic slowdown.

The yield on the US 10 year Treasury note went up on Friday, pressuring demand for gold.

The opportunity cost of holding bullion, which yields no interest is raised by higher interest rates and bond yields.

After an increase in the previous session, the dollar grew, making it less attractive for buyers holding other currencies.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.81% to 1,063. On Thursday, there were 07 tons from 1,071. 77 tons were produced a day earlier.

Spot silver fell 0.1% to $20.92 per ounce, and platinum increased 0.6% to $912.00, but both were set for weekly losses.

The palladium rose 1.1% to $1,863. It gained 62, and has gained about 3% this week.