Fed Rate Hike Expectations Weigh on Gold Prices

Gold prices are experiencing their worst week in recent times due to rising US Treasury yields and growing expectations of Federal Reserve rate hikes.

Spot gold, which measures the price of gold traded on exchanges worldwide, rose by just 0.3% to $4,291.06 per ounce at 0844 GMT on Friday but has still lost around 2% in value over the course of the week.

The market's sentiment is shifting as investors become increasingly confident that the Federal Reserve will raise interest rates in the near future, a move that tends to increase the attractiveness of US Treasury bonds and reduce demand for gold.