Gold heads to record largest weekly decline in more than 3 ‎months

Gold prices rose today, Friday, but headed for their largest weekly decline in three and a half months, as hopes that negotiations would reach a solution to the US government debt ceiling crisis and fading expectations of cutting interest rates by the end of the year led to a decline in gold.

According to “CNBC”, gold increased in spot transactions by 0.3% to 1963.39 dollars an ounce, but it headed towards a weekly decline of 2.4%, which is the largest since early February.

Gold futures rose 0.2% to $1,964.60

Ilya Spivak, head of the global macroeconomic unit at Testlife, said that the markets expect a positive end to the US government debt ceiling talks, as the new statements speak of progress, “and with the rise in Treasury yields and the dollar at the same time, gold will decline.”

The dollar index fell slightly on the day, but hovered near a two-month high, making gold more expensive for foreign investors.

Two policymakers at the Federal Reserve said that it does not seem that inflation in the United States is declining fast enough to allow the US central bank to suspend interest rate hikes.

Federal Reserve Chairman Jerome Powell is scheduled to speak at an event later in the day, and traders will be looking for any clues to the path of monetary policy.

As for other precious metals, the price of silver in spot transactions rose 0.6% to $23.64 an ounce, the price of platinum rose 0.3% to $1052.43, and palladium increased 1.5% to $1474.63.