Gold is heading to record its second weekly loss
Gold prices stabilized today, but they are heading to record the second weekly decline in a row, as the demand for the yellow metal was affected by fears that the major central banks might raise interest rates significantly to confront hyperinflation.
And gold rose in spot transactions 0.1 percent to $ 1824.72 an ounce (an ounce) by 0215 GMT, after hitting its lowest level in a week at 1820.99 earlier in the session.
US gold futures fell $0.2 to $1,825.90.
Gold prices have fallen about 0.9 percent this week.
Federal Reserve Chairman Jerome Powell told lawmakers yesterday that the bank's commitment to curb inflation, which has risen to a 40-year high, is "unconditional", even as he acknowledged that very high interest rates could increase unemployment.
"The US dollar remains strong and expectations are now leaning towards a 75 basis point Fed rate hike in July," said Matt Simpson, chief market analyst at City Index.
A strong dollar makes gold priced in US currency more expensive for buyers of other currencies.
US 10-year Treasury yields rose today, reducing the demand for non-yielding gold.
As for other precious metals, silver rose in spot transactions 0.4 percent to $ 21.02 an ounce, and platinum increased 0.9 percent to $ 915.11 an ounce, but they are heading to incur weekly losses.
Palladium rose 1.4 percent to $ 1870.29, and it has risen about 3 percent this week.
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