Gold stable near two-year low

Gold prices were stable today, Friday, near their lowest level in more than two years, and they are on track to record their worst weekly performance in two months, after expectations caused a significant increase in interest rates by the Federal Reserve (the US central bank) and higher bond yields, which extinguishes the luster of the precious metal

Spot gold prices fell 0.1% to $ 1661.97 an ounce by 0724 GMT, after hitting its lowest level since April 2020 at $1658.30 per ounce. Prices have decreased by 3.2% since the beginning of the week until now.

US gold futures also fell 0.4% to $1,670.50 per ounce.

This comes as US 10-year Treasury yields are approaching their highest level since June, while the dollar is set to record a weekly rise against its rivals.

Gold is very sensitive to raising US interest rates, as it increases the opportunity cost of holding non-yielding bullion.

As for other metals, silver fell in spot transactions 0.9% to $18.98 an ounce. Platinum fell 1.7% to $889.19, and palladium fell 1.7% to $2,099.54.