Gold prices teetered near their lowest level in more than two years on Friday, heading for their worst week in two months as prospects of aggressive US FED rate hikes pushed bond yields higher and bullion shine GMT fell 0.1% to $1,661.97.

After hitting its lowest level since April 2020 at $1,658.30 . Prices are down 3.2% so far this week. Gold futures fell 0.4% to $1,670. 50. “For now, gold appears to be stabilizing after the sharp overnight sell-off,” said one market strategist. Federal Open Market Committee meeting next week, with a dovish Fed the likely outcome. Benchmark 10-year Treasury yields teetered around their highest level since June., while the dollar rose against its rivals on a weekly basis.

Markets are pricing in a 75 basis point rate hike by the US Federal Reserve in August as lower gasoline prices support spending. While US Jobless claims fell last week. ”A 75 basis point hike is all set, so everyone wants to know if the Fed will maintain an aggressive rate of tightening as we head into 2023. Gold is likely to suffer from an aggressive rally,” said Matt Simpson, senior market analyst Says .

Gold is very sensitive to rising US interest rates as they increase the opportunity cost of holding distressed precious metals while boosting the dollar. Meanwhile, India cut fundamental gold import prices on Thursday.

Spot silver fell 0.9% to $18.98 an ounce. Platinum fell 1. 7% to $889.19, while Palladium Metal is down 1.7% to $2,099.54. – SHREE METAL PRICES