Gold eyes worst week since Nov as rate hike bets boost dollar

Gold extended declines on Friday and was set for its worst week since late November as growing expectations of U.S. interest rate hikes pushed the dollar to a multi-month high.

According to Reuters, spot gold fell 0.7% to $1,784.40 per ounce at 10:48 a.m. ET (1548 GMT). It hit a six-week low of $1,779.20 earlier in the session, heading for an about 2.6% weekly drop.

U.S. gold futures fell 0.7% to $1,783.10.

Gold prices slipped below its 100-day and 200-day moving averages in the last session, after the U.S. Federal Reserve reaffirmed plans to end its pandemic-era bond purchases and signalled an interest rate hike in March.

The rate hike expectations set the dollar on track for its biggest weekly rise in seven months, making gold more expensive for overseas buyers.

Spot silver dropped 1.6% to $22.37 an ounce, and is set for an about 7.5% fall for the week.

Platinum fell 2.6% to $995.99, while palladium declined 2.4% to $2,319.20, but has gained about 10% this week.