By Gina Lee
Investing.com – Gold was up on Friday morning in Asia but moves remained small and the yellow metal was headed for its sharpest weekly decline since November 2021. Investors continue to digest the U.S. Federal Reserve’s policy latest policy decision that drove the dollar to a multi-month high.
were up 0.26% to $1,797.70 by 10:53 PM ET (3:53 AM GMT). However, gold fell below the $1,800 mark and fell about 2% for the week to date, the worst fall since Nov. 26.
The , which normally moves inversely to gold, inched down on Friday but traded near its highest level since July 2020.
The ripple effect from the Fed’s hawkish turn in its , handed down on Wednesday, continues. With expectations of interest rate hikes sky-high, markets are now pricing in five to six hikes from the Fed in 2022.
Investor sentiment was also bolstered by U.S. data that showed the grew a better-than-expected 6.9% quarter-on-quarter in the fourth quarter of 2021.
Other central banks handing down their policy decisions in the following week include the , the , and the .
However, a Reuters poll warned that gold is expected to drift lower in 2022 and 2023 as central banks hike interest rates, lifting bond yields and dulling the appeal of non-yielding bullion.
On the supply side, Swiss customs data showed that the country’s gold exports in 2021 rose to their highest since 2018. This was bolstered by demand in China and India, two of the biggest consumer markets which are recovering from the impact of COVID-19.
In other precious metals, silver edged down 0.2%. Platinum inched up 0.1% and palladium remained unchanged at $2,375.18.
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