Gold was flat on Friday, getting ready for its sharpest weekly decline since November, as markets digested the U.S. Federal Reserve’s policy tightening policy plan, one which led to a surge in dollar and Treasury yields.
Spot gold was unchanged at $1,797.71 per ounce early Friday morning U.S. gold futures was up 0.2% at $1,798.80.
The shiny yellow metal fell about 2% on the week, its worst plunge since Nov. 26.
The U.S. two-year yield, which reflects interest rate expectations, surged to 1.208% on Thursday, a nearly two-year peak.
Higher yields and interest rate hikes raise the opportunity cost of holding non-interest paying gold.
A recently published Reuters poll showed gold prices will drift lower in 2022 and 2023, as central banks raise interest rates.
Meantime, spot silver was up 0.2% to $22.79 U.S. an ounce. Platinum rose 0.6% to $1,028.36 U.S. and palladium fell 0.8% to $2,356.20 U.S.
